Data firm Helios and Matheson Analytics has struck a deal to acquire a majority stake in MoviePass, according to Deadline. MoviePass is a monthly subscription service that pays for its subscribers to watch one standard 2-D movie a day in any theater that accepts debit cards.
H&M will pay $27 million for a 51% stake in MoviePass. The deal is contingent on MoviePass reaching 100,000 active subscribers for at least one day in the year after the deal is finalized. The terms of the deal also require that MoviePass go public with its stock by the end of January, 2018.
According to MoviePass CEO Mitch Lowe, who founded Netflix and later served as president of Redbox, MoviePass's service "completely disrupts the movie industry in the same way that Netflix and Redbox have done in years past."
"[MoviePass can] be the catalyst needed to reinvigorate the film industry," added COO Stacy Spikes. "Our data continues to reinforce the amazing benefits of subscription for customers, theaters and studios. For our industry to remain relevant, we must be bold and experiment with wild new ideas.”
MoviePass recently lowered its subscription cost to $9.99 a month from $14.95 a month. According to Variety, the service is usable at over 91% of US theaters, including chains such as AMC, Regal, and Cinemark.