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MoviePass™ and MoviePass Films Announce New Strategic Direction

HMNY | March 6, 2019

MoviePass™ and MoviePass Films Announce New Strategic Direction

MoviePass™ Refocuses its Business Model to No Longer Depend on Revenues from Studios and Exhibitors

Following the previously announced intention to create a vertically integrated film production and exhibition company called MoviePass Entertainment Holdings Inc., MoviePass™ and MoviePass Films announced their new business strategy going forward.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190306005479/en/

MoviePass(TM) and MoviePass Films announce new strategic direction. (Photo: Business Wire)

MoviePass™ and MoviePass Films plan to implement a new business model that prioritizes self-generated revenues without dependence on studios or exhibitors, to build more reliable revenue streams.

The future growth of the MoviePass™ group of companies will require us to take advantage of the rapidly evolving media landscape. To maximize our audience reach, we plan to focus on technological innovation and high-quality content production through our three key channels - MoviePass™ (theatrical subscription service); MoviePass Films (original content production company) and Moviefone™ (multimedia media information and advertising service).

Below are the highlights of our strategic vision:

Our new business model no longer depends on achieving revenues from studios or exhibitors to succeed, but instead will prioritize the economic relationship among our MoviePass™ subscription service, MoviePass Films production business and Moviefone™ multimedia media information and advertising service.
We believe the MoviePass™ subscription service will enhance box office results of MoviePass Films productions, and that revenues from our MoviePass Films productions will help fuel an expansion of our MoviePass™ subscription service, with the Moviefone™ multimedia media information and advertising service supporting the entire group of MoviePass™ companies.
By seeking to generate new revenues and profit centers within our own ecosystem, we believe we can accelerate our overall growth in the U.S. market.
MoviePass™, MoviePass Films, and Moviefone™ plan to work together in a much more interconnected fashion and share resources across each company.
MoviePass Films will seek to optimize its platform to accelerate content production for theatrical release as well as expand distribution deals for in-home video, and retail, transactional and international sales.
We believe this new model will enable us to increase our revenue per MoviePass™ subscriber.
We also believe this new model will significantly enhance our subscriber satisfaction and retention by enabling us to increase inventory on the MoviePass™ subscription service, thereby providing a more consistent subscriber experience for the casual moviegoer.
We remain committed to offering a wide inventory of movies and enhanced box office results for our industry partners.
Our strategy will also focus on technology development, building stronger deterrents to prevent violations of the MoviePass™ terms of use that are costly to us and damaging to the MoviePass™ community of casual moviegoers.

“By spending the last several months analyzing the many different aspects of our prior business model, in terms of what worked and what didn’t, I believe we’ve been able to illuminate the path forward. We’ve taken a deep dive to understand our unique ecosystem and I believe we’re now ready to move forward at a rapid pace. I see this as an exciting time for MoviePass and its sister companies, because we’re taking our original vision for subscription, altering it for the better, and proceeding with significant clarity,” said Ted Farnsworth, CEO of MoviePass’ parent company, Helios and Matheson Analytics Inc.

“We have gained a tremendous amount of insight into moviegoers and the industry over this past year and a half. MoviePass™ subscription, MoviePass Films and Moviefone™ now have a winning combination that we believe will drive consumers to our films, and re-energize casual moviegoers to go more often and see great films in local theaters – films that consumers often wait to see much later through streaming services,” Mitch Lowe, CEO of MoviePass.

“We always believed in the MoviePass™ value proposition for filmmakers. Now, after witnessing how MoviePass™ subscribers can positively impact box office results of our own movies, I must say the opportunity of this partnership is bigger than I ever thought it would be,” said Randall Emmet, Co-CEO of MoviePass Films. “At the end of the day, we believe we will be getting people back in movie theater seats, this time to the benefit of our companies and the MoviePass™ community of casual moviegoers. That’s exciting and certainly a game-changer,” concluded Mr. Emmett.

About MoviePass Inc.

MoviePass Inc. (“MoviePass”) is a marketing technology platform enhancing the exploration of film and the moviegoing experience. As a premier movie-theater subscription service, MoviePass provides film enthusiasts the ability to attend select new movies in theaters. The service is now accepted at theaters everywhere in the U.S. Visit us at moviepass.com.

About MoviePass Films:

MoviePass Films LLC (“MoviePass Films”) is dedicated to supporting independent filmmakers and distributors by collaborating with creatives, co-acquiring equity stakes in films and offering them enhanced performance in the theatrical window. A joint venture of Helios and Matheson Analytics Inc. and Emmett Furla Oasis (EFO) Films, MoviePass Films focuses on studio-driven content and new film production for theatrical release and other distribution channels, with the goal of democratizing the film production experience by bridging the gap between moviegoers and film industry endeavors.

About Helios and Matheson Analytics

Helios and Matheson Analytics Inc. (OTC:HMNY) (“Helios”) currently owns approximately 92% of the outstanding shares (excluding options and warrants) of MoviePass, a premier movie-theater subscription service, 100% of the outstanding equity interests of MoviePass Ventures LLC, and 51% of the outstanding equity interests of MoviePass Films. Helios also owns Moviefone™, a multimedia media information and advertising service. Helios' holdings include RedZone Map™, a safety and navigation app for iOS and Android users, and a community-based ecosystem that features a socially empowered safety map app that enhances mobile GPS navigation using advanced proprietary technology. Helios is headquartered in New York and quoted on the OTC Market under the symbol HMNY. For more information, visit us at www.hmny.com.

About Emmett Furla Oasis Films:

Emmett Furla Oasis Films initially was founded in 1998 and was a combination of Emmett’s extensive entertainment industry experience and Furla’s business expertise. In 2013 a collaboration was finalized with Oasis Ventures Entertainment. The success to date has been rooted in the company’s ability to facilitate relationships between top creative talent (including actors, writers, and directors) and companies who produce, finance, and distribute motion pictures. To date, more than 80 films have been produced which include The Amityville Horror, Rambo, 16 Blocks, End of Watch, Broken City, The Frozen Ground, Escape Plan, 2 Guns and Lone Survivor.

Cautionary Statement on Forward-looking Information

Certain statements in this communication contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 or under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (collectively, “forward-looking statements”) that may not be based on historical fact, but instead relate to future events, including without limitation statements containing the words “believe”, “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect” and similar expressions. All statements other than statements of historical fact included in this communication are forward-looking statements.

Such forward-looking statements are based on a number of assumptions. Although Helios’ management believes that the assumptions made and expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement contained herein will prove to be accurate. Actual results and developments may differ significantly from those expressed or implied by the forward-looking statements contained herein and even if such actual results and developments are realized or substantially realized, there can be no assurance that they will have the expected consequences or effects. Some, but not all, of these risks include, among other things: our capital requirements and whether or not we will be able to raise capital as needed; whether our new subscription plan and business model will be successful; our ability to successfully develop the business model of MoviePass, Moviefone, and MoviePass Films; our ability to retain our existing subscribers and market and sell our services to new subscribers following the change in the subscription plan and business model; our ability to integrate the operations of MoviePass, Moviefone, MoviePass Films and MoviePass Ventures and other acquired businesses into our operation; audience acceptance of the films and acquired content of MoviePass Films; delays, cost overruns, cancellation or abandonment of the completion or release of MoviePass Films’ films; failure of third party distributors to distribute MoviePass Films’ films and their failure to perform or promote such films; changes in consumer discretionary spending; the inability of MoviePass, MoviePass Films and Moviefone to compete effectively; Helios’ ability to fulfill its payment obligations to MoviePass’ merchant processors in a timely manner to prevent MoviePass service interruptions; changes in local, state or federal regulations that will adversely affect Helios’ business; consumer acceptance of the new uncapped MoviePass subscription plan; the success of cost-reduction and subscription revenue increase measures; the risk that increased monthly usage by MoviePass’ subscribers may cause MoviePass to incur losses and negative cash flow; risk of attempts at unauthorized or improper use of MoviePass’ services; the inability to maintain or rebuild the value of the MoviePass brand; the inability to successfully respond to rapid technological changes and alternative forms of delivery or storage to remain competitive; the inability to maintain relationships with program suppliers and vendors; the ability of Moviefone to obtain advertising revenues; consumer acceptance of Moviefone services; the ability of Moviefone to develop and offer compelling content, products and services and attract new users or maintain existing users; breaches of network and data security measures; a disruption or failure of networks and information systems; the impact of legal proceedings or governmental action against Helios and MoviePass; whether Helios will continue to receive the services of certain officers and directors; Helios’ ability to protect its and its subsidiaries’ intellectual property and operate its businesses without infringing upon the intellectual property rights of others; and the risk factors described in Helios’ Annual Report on Form 10-K for the fiscal year ended December 31, 2017, its quarterly reports on Form 10-Q for the quarters ended March 31, 2018, June 30, 2018 and September 30, 2018, including subsequent current and periodic reports, information statements and registration statements filed with the U.S. Securities and Exchange Commission. You are cautioned to review such reports and other filings at www.sec.gov.

Given these risks, uncertainties and factors, you are cautioned not to place undue reliance on such forward-looking statements and information, which are qualified in their entirety by this cautionary statement. All forward-looking statements and information made herein are based on Helios’ current expectations and Helios does not undertake an obligation to revise or update such forward-looking statements and information to reflect subsequent events or circumstances, except as required by law.