MoviePass parent Helios & Matheson has issued another press release today to ease concerns of the investors and three million subscribers into its movie ticketing subscription service.
Today’s release compared the company to Uber in its early disruptive days and that everything is going according to plan:
“Exhibitors know that without MoviePass they will be able to continue to charge exorbitant prices for theater tickets and gouge customers with overpriced concessions. This is exactly the attitude the taxicab industry took when Uber entered their market.
Overall, we believe as much as 6% of the industry’s total box office receipts can be traced to our loyal subscribers. It’s clear that because of MoviePass, more people are seeing more movies at fair prices. Instead of wishing us away, the industry, particularly the independent film producers, should be congratulating and supporting us.
Absent MoviePass, exhibitors are fighting to preserve profits in a declining box office environment. That’s the doomed strategy. Yes, we’re going through a rough patch not unlike what other disruptive enterprises experienced in their early days. Much of our issues can be attributed to the unprecedented growth in a business that just 12 months ago did not exist.”
Investors aren’t buying it, shares plummeting a further 43% toward the end of the trading day with the stock hovering at around 13 cents. That’s well below the $1 threshold it needs to clear to stay listed on the Nasdaq.