Exterior view of AMC movie theaters in Santa Clara, Calif., Monday, May 21, 2012. (AP Photo/Paul Sakuma)
(MEREDITH) -- A movie-a-day subscription program to the movie theatre for less than $10 might sound like a great idea to consumers, but MoviePass slashing rates is less than popular with the nation’s largest movie theatre operator.
In a statement on Tuesday, AMC Theatres announced it was exploring options to block the MoviePass program from being used at its theatres. AMC says they have concerns over the sustainability of the program. The company worries that it “only sets up consumers for ultimate disappointment down the road if or when the product can no longer be fulfilled.”
MoviePass slashed its subscription prices to $9.95 on Tuesday, which AMC believes could set the subscription service up for future troubles. AMC’s statements states MoviePass will pay AMC full price for each movie subscribers go see, and at $9.33 a pop that means MoviePass will be taking a loss after the first movie a customer sees each month. “AMC noted that it is not yet known how to turn lead into gold,” the statement reads.
AMC’s stock has taken a steep dive in recent weeks, reports Variety. Films have flopped at the box office this summer, and the slump is dragging down exhibition stocks. AMC’s stock fell 2.57% on Tuesday following the price slashing announcement by MoviePass.