AMC Theaters isn’t too happy with MoviePass right now. They have threatened them with a lawsuit almost instantly after MoviePass lowered their subscription fees to $10 a month when it used to be $50 a month.
Even though MoviePass has to pay AMC Theaters the same amount they did before when someone used the subscription, AMC Theaters isn’t happy with they call an unsustainable switch. MoviePass lowering their prices makes them much more vulnerable to loss of compensation if people go to, say, two movies a month.
AMC Theaters has argued that prices that go below $10 a month over time will not able to generate the funds need to operate quality theaters or make enough income to allow filmmakers to create movies a value.
It’s understandable the AMC Theaters is angry with MoviePass because in 2014 they entered a deal where MoviePass would offer their subscriptions for $35.
MoviePass CEO Mitch Lowe told Variety that he is aware that the company would “lose money in the process” of closing the $10 deal.
AMC is currently working with their lawyers to see if they can prevent MoviePass subscriptions from being used at their cinemas. They had this to say:
“While AMC is not opposed to subscription programs generally, the one envisioned by MoviePass is not one AMC can embrace. We are actively working now to determine whether it may be feasible to opt out and not participate in this shaky and unsustainable program.”