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AMC Theaters is threatening legal against MoviePass, a subscription service that allows users to see one movie a day for $9.95 a month.

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AMC Theaters Threatens Legal Action Against MoviePass Subscription Service

AMC Theaters is threatening legal against MoviePass, a subscription service that allows users to see one movie a day for $9.95 a month.

AMC Theaters is threatening legal action against MoviePass, a subscription service that allows members to see one movie a day for only $9.95 a month.

If you visit the service’s website, MoviePass advertises “Any Movie, Any Theater, Any Day” for only $9.95 a month. You don’t even need to be a regular movie-goer to appreciate that price. With the service, even if you saw one movie a month, it would still be less expensive than most ticket prices today, especially as average theaters become more and more upscale, introducing recliner seats, dine-in eating options, etc.—which are great, but also hike up ticket prices, sometimes to a whopping $15 a pop.

In that case, MoviePass almost seems too good to be true. Turns out, that may be so, if more theaters like AMC have anything to say about it.

AMC Theaters Releases A Statement

After MoviePass announced that it would be reducing its price from $14.95 a month to $9.95 a month, AMC Theaters announced that they were consulting with lawyers to determine if they could block ticket sales to MoviePass subscribers.

“From what we can tell,” AMC said in a statement, “by definition an absent some other form of other compensation, MoviePass will be losing money on every subscriber seeing two movies or more in a month.”

AMC continued that the $9.95 price tag is “unsustainable and only sets up consumers for ultimate disappointment down the road.” The chain isn’t opposed to the concept of the subscription service, but MoviePass is “not one AMC can embrace.”

MoviePass CEO Responds To AMC Pushback

Mitch Lowe, CEO of MoviePass, responded to the AMC blowback in an interview with Variety, telling the publication, “I’m not worried about it killing the sale. What I’m worried about is it confusing customers and making them believe they can’t use this service at AMC theaters.”

MoviePass, while greatly benefiting the consumer, also claims to support the theaters, boosting attendance and concession sales. This isn’t so farfetched; ask anyone who doesn’t go to the movies anymore why and they’ll all have the same answer: it’s too expensive. With a service as affordable as MoviePass, movie-goers can reasonably do just that again. Go to the movies. Without blowing $20 for a ticket, popcorn, and soda to do it.

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Lowe also told Variety that AMC’s response to the service reminds him of a time, not so long ago, when Netflix and Redbox received backlash from movie studios and video rental chains.

“This is so much like Blockbuster was when we rolled out Netflix or Redbox,” he said. “It’s the big guy being afraid of the little guy offering better value to consumers.”

Theater chains certainly have reason to be nervous. Ticket prices aside, we now live in a world where streaming is everything, from Netflix to Amazon to Hulu and all the video players in-between. It’s entirely possible, as Deadline points out, that Hollywood studios will soon latch onto this trend, with a premium video on demand service that would allow cinephiles to watch new releases from the comfort of their own living room. People need a reason to go theaters again, and a lower price tag would certainly help.

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