Things sure look like they’re getting ugly between MoviePass and AMC Theaters, as the discount ticket service has followed up reports that it was pulling out of a handful of AMC theaters with a press release indicating that the two parties have effectively ended their partnership.
Ted Farnsworth, the CEO and chairman of Helios and Matheson, which acquired MoviePass, issued a statement announcing that the company would be pulling out of 10 AMC Theaters, which we know doesn’t sound like a lot. But Farnsworth also threw out a few multimillion-dollar figures, claiming that “approximately 62% of AMC’s operating income” comes from MoviePass subscribers, which is “$34.4 million of gross profits” a year, and “on an annualized run rate basis, that’s over $135 million to AMC’s gross profits.” And that’s not even counting concession sales that MoviePass users generate.
And if you want some more math—and shade—Farnsworth’s statement notes that the 10 AMC theaters that MoviePass has just ended its association with comprise less than 2 percent of all theaters. And the company knows “that MoviePass subscribers are not theater-loyal; they’re happy to drive by a theater that may be closer to a theater that will accept MoviePass—because of the MoviePass value.” The executive indicated that things had been been rocky from the beginning, then ended his statement by promising to look out for MoviePass subscribers: “We’re here for them and will fight battle for them every day of the week.”
Update: CNET’s rounded up a list of the 10 AMC theaters that won’t take your MoviePass from here on out.