Helios and Matheson Analytics (NASDAQ: HMNY) is making news again today, with its stock surging 150% in early trading -- only to fall back to a 36% loss as of noon EDT.
The reason: Helios' MoviePass subsidiary today announced a series of actions that it hopes will stabilize its business, produce enough cash flow to continue paying for the services it provides its members, and "compress its timeline to reach profitability."
Here's a quick, probably not comprehensive, and somewhat vague summary of what the company is contemplating:
- Within the next 30 days, MoviePass will hike its monthly subscription price roughly 50% to $14.95.
- First-run movie blockbusters will be blacked out and unavailable for purchase with MoviePass for the first two weeks they're in theaters, except on a "promotional basis" (i.e., unless you pay extra).
- Surcharges dubbed "peak pricing" will also continue.
- "Additional tactics" will be implemented, along the lines of MoviePass' much-reviled requirement that customers take pictures of their tickets and submit them to the company after each purchase.
- And MoviePass will continue trying to forge partnerships with third parties, and more heavily promote content it owns itself, to create additional revenue streams.
Not all these moves will work, but MoviePass is hoping that some combination might help to cut its monthly burn rate by 60%, stretching out the $6.2 million that it recently borrowed from Wall Street. I wouldn't bet money that these moves -- the business equivalent of throwing spaghetti at the wall to see what sticks -- will be the end of its efforts to find a combination that will keep it in business.
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