For a company with major questions about its long-term future and short-term capitalization, MoviePass doesn’t show any signs of slowing down. In fact, now the company that gives customers a chance to see a movie a day for less than $10 per month is looking to get into the production side of the business.
According to Variety, in a move announced today, the parent company of MoviePass, Helios and Matheson Analytics, has “acquired the exclusive option to buy” Emmett Furla Oasis Films. The production company started in 1998 and has produced more than 80 films including Day of the Dead, The Wicker Man, Escape Plan, Lone Survivor, and End of Watch.
If the cash and stock deal goes through, MoviePass Films will become a reality, with Helios and Matheson owning 51 percent of the new company and EFO owning the rest. MoviePass Films will obtain EFO Films’ entire library and takeover their current slate of films in development and production. EFO’s Randall Emmett and George Furla will stay on as the new joint venture’s co-CEOs.
Granted, that all depends on Helios and Matheson staying afloat in these trying times. In the wake of investors being scared off about a “cash shortage,” the stock price fell last week to its lowest closest price ever at 40 cents a share. When you compare that to the $38.86 share price it was trading at in October, you can see why expansion could prove a bit tricky.
However, yesterday’s news that global market maker Citadel Securities is taking a 5.4 percent stake in Helios gave their stock a 15 percent bump. And Ted Farnsworth, the company’s CEO remains optimistic, telling Variety that MoviePass is in it “for the long haul.”
And in a statement, MoviePass CEO Mitch Lowe noted that the company’s move into content has always been part of the plan:
“Since we began disrupting the movie industry with our unprecedented low-cost movie theater subscription service, MoviePass, we have envisioned owning and developing our own studio content and using the power of our several million subscribers to bolster the success of the box office for our films. I believe MoviePass Films will accelerate those efforts and demonstrate the power of MoviePass to drive movie theater attendance and downstream sales, for the benefit of moviegoers, movie theaters, studios and the film entertainment ecosystem as a whole.”
We’ll have to wait and see if us movie fans truly benefit from the new source of theatrical releases and other forms of distribution, but in the meantime, it sounds like you should go ahead and renew your MoviePass subscription. It sure seems as though they’ll be sticking around awhile, don’t you think?