![]() The idea is that through the data collected by the MoviePass service, the company will be able to create second to none marketing services for studios, producers, restaurants, and others that are part of the night out to the movies experience. Either the company will go bankrupt or the Mshares will be diluted down to nothing! Data Is The Key Value Propositionįor Helios and Matheson and its MoviePass venture, data is the key value proposition. With offering after offering, it's clear that Helios and Matheson simply can't afford to keep running at this rate. This time, it planned on raising $105 million. February - Most recently, on February 13th, the company announced yet another public offering.That's because, in December, Helios and Matheson announced a public offering with the goal of raising $60 million. December - December proved to be yet another very expensive and dilutive month. ![]() During the month, the company raised $100 million. November - In November, the company announced that it would be raising funds through the sale of convertible notes.Just take a look at the company's recent press releases: In fact, the company has been diluting shares through the raise of funds since the acquisition of MoviePass. Unfortunately, Helios and Matheson simply can't afford to continue at this rate. Helios And Matheson Can't Afford To Continue At This Rate In doing so, it has been buying more and more of MoviePass, currently holding around 78% of the company. In fact, the losses are so large that Helios and Matheson has had to help keep MoviePass afloat and support growth since it purchased the majority stake. Net Loss - If these figures are on the money, MoviePass is experiencing a net loss on its subscription fees in the amount of $15.02 million per month.Subscriber Revenue - Considering that as far as we know, MoviePass has 2 million subscribers paying a rate of $9.95 per month, revenue from subscriptions only equates to about $19.9 million per month.At an average cost of $8.73 per ticket, the company is spending roughly $34.92 million per month on movie tickets. Movie Tickets Cost - If the average MoviePass subscriber visits the movie theater twice per month (HMNY has not released data on how much its subscribers go to the movies, this is just a best guesstimate!), the company is purchasing 4 million movie tickets per month.Assuming that the average MoviePass holder goes to the movie theater twice per month, each and every subscriber is creating a loss for Helios and Matheson Analytics. In fact, the average cost of a movie ticket in the United States currently sits at $8.73 per ticket. That's right, and movie tickets are expensive. Helios and Matheson Analytics is paying full price for Movie Tickets used by its subscribers. Unfortunately, as subscribers on the service grow, the losses associated with the service are growing ! Here's the big issue: Unfortunately, this is where the problem lies for Helios and Matheson Analytics. Well, that is, as long as the subscribers on the company's service are making the company money. The reality is that there is absolutely nothing wrong with growth in subscribers. We believe the data MoviePass™ collects from these two million movie-goers will become an important asset to our partners and the future of the movie industry. MoviePass™ is attracting people back to the movie theaters by lowering their cost, which we believe is transformational for the industry. In January, the company surpassed 1.5 million subscribers, and most recently, on February 8, 2018, the company announced that the service had surpassed 2 million subscribers! Of course, Ted Farnsworth, CEO at Helios and Matheson Analytics, was overwhelmingly happy about reaching the milestone, offering the following comment: From there, the announcements continued to come. Within the first month, Helios and Matheson announced that it had grown subscribers into the hundreds of thousands from just 40,000. The goal of doing so was to increase subscriptions on the service, and the company did just that. Upon the acquisition of MoviePass, Helios and Matheson Analytics greatly reduced the price of the service, bringing the price down from around $40 per month to $9.95 per month. ![]() Subscription Growth Is Great, But That Only Means More Losses. While Helios and Matheson did have the RedZone Maps product before it acquired MoviePass, there's no denying the fact that the unlimited movie theater ticket subscription service is what really put the company in the limelight. Back in August of last year, the company acquired a majority stake in MoviePass. ![]() When we think of Helios and Matheson Analytics ( OTC:HMNY), the first thing that comes to mind is MoviePass, and for good reason.
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