SALT LAKE CITY — MoviePass doesn’t want you to worry. Everything will be fine.
MoviePass’ parent company Helios and Matheson watched its stock drop 99 percent to 17 cents per share Friday, down from $39 back in October, when the company started offering a movie ticket per day for $10 per month.
MoviePass CEO Mitch Lowe told CNNMoney there’s no reason to worry about the stock drop. The company, he said, is in good hands.
“We've already announced that we are looking at different options of doing a reverse (stock split) and all these different things to recapitalize, restructure the company,” he said. “But there's no shortage of institutions willing to work with us to give us money, even as we're going through this right now, losing money. The institutions definitely understand the model. They understand where we're going. And I think that we've gotten there in record time.”
Lowe said the company plans to break even by the end of the year, which is when it hopes to reach 5 million subscribers.
He said something similar in an interview with BuzzFeed News this week, explaining the company will likely break even by the end of 2018.
If not, it’ll likely lose only $1 per customer, he said.
Lowe told CNNMoney the company isn’t worried about other movie theater chains joining the subscription service game, either. He said MoviePass’ subscription numbers jumped 23 percent after AMC joined the game.
As the Deseret News reported, AMC (arguably MoviePass' biggest critic) announced last month it would add a new subscription service for about $19.95 per month.
Cinemark already has its subscription service that offers more deals and discounts. Meanwhile, Sinemia is a MoviePass competitor that continues to add features that remain unseen in MoviePass.
Read the entire interview with Lowe at CNNMoney.
Correction: A previous version incorrectly stated AMC's subscription service cost $12 per month. The actual price is $19.95 per month.