MoviePass, an app that lets subscribers see up to a movie a day in theaters for a flat monthly fee, has angered the largest theater chain in the U.S. AMC Theaters is considering legal action against the app after it dropped its monthly subscription rate Tuesday from $50 per month to just $9.95 per month.
In 2016, movie tickets across the U.S. cost $8.86 on average, meaning that with MoviePass' new discount deal, avid moviegoers could potentially see 30 movies for the price of one. Theaters themselves would not see a direct loss in revenue if the app fails, because MoviePass buys its tickets from theaters at full price. Even so, AMC Theaters issued a statement Tuesday calling the price drop "unsustainable" and warned that it "sets up consumers for ultimate disappointment down the road, if or when the product can no longer be fulfilled."
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