Investing.com – Helios and Matheson shares were suspended Wednesday to end the 15-year journey as a listed company.
The suspension of its shares is one day after the removal of Helios from the Nasdaq. The shares were traded on the counter, the company said.
This may be the end of Helios and Matheson as a public company, but it marks the beginning of a new chapter for its subscription services business, MoviePass Entertainment, which it acquired in December 2017.
Helios and Matheson announced last October that they would outsource MoviePass to separate the Subscription Services unit from the company's data analytics business.
MoviePass was a problem child for Helios and Matheson, as his subscription model has problems with all the movies you can eat.
The MoviePass app was very clunky, much to the annoyance of the customers. Reducing the number of films subscribed to by cinemagoers proved fatal when it came at a time when rivals, including AMC (NYSE), introduced similar subscription plans.
However, MoviePass is free from the shackles of Helios and Matheson and has discretion in its subscription plans. It is expected that MoviePass will apply a simpler model for subscribers.
MoviePass uses a bait-hook approach, or rather, the screen with movies that MoviePass subscribers have to pay to avoid some of the earlier pitfalls.
However, the path to new beginnings for MoviePass is anything but smooth, as the experience of going to a cinema loses some of its appeal to online streaming companies like Netflix (NASDAQ).
"The revenue from the worldwide subscription (over-the-top content provided over the Internet) will overtake box-office revenue in 2019, when the revenue from the cinema will be close to $ 40," said Ampere Analysis ,
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