- Netflix is adding almost as many subscribers in one year as HBO did in 40 years
- Ex-colleague of Netflix's CEO: Investors who fear the stock's high valuation are making a big mistake
- Google to charge smartphone makers for Google Play in Europe
- U.S. Senate panel wants Hyundai, Kia to testify on engine fire reports
- Trump: 'Not at all' giving cover to Saudis in journalist's disappearance
AMC Entertainment CEO Adam Aron said Wednesday that big moviegoers are willing to shell out cash for the company’s new subscription service over cheaper options due to its immense value.
The movie theater operator last month announced AMC Stubs A-List, which allows consumers to see up to three movies per week for about $20 a month. The service includes Imax and 3D films.
Aron, former CEO of Starwood Hotels & Resorts Worldwide, said that since the launch, 175,000 people have already signed up. He expects there will be 185,000 customers by the end of Wednesday.
“We are just stunned at the consumer response,” Aron said in an interview with CNBC’s “Closing Bell.” “They are signing up in big numbers and it’s because the value for consumers is so good.”
The subscription service comes as cheaper rival MoviePass, the subscription-based movie ticket service, has been seeking to limit losses by hiking its monthly fees.
Aron said AMC’s model is centered around being profitable while also adding value to consumers’ experience at the movie theater.
“We wanted to have a program that would be profitable for AMC, profitable for our studio partners but as important as anything, loaded with value for our guest with a sustainable price point,” Aron said Wednesday.
AMC reported second-quarter earnings Wednesday that beat Wall Street’s expectations. Revenue also topped forecasts amid a record quarter for both admissions and food and beverage sales.
The company’s stock closed down 1.5 percent on Wednesday, but it’s up more than 6 percent so far this year.