Shares of AMC Entertainment soared more than 10% on Monday, thanks to the strong demand of ‘Avengers: Endgame’ tickets. Following this success, investment firm R. Riley FBR raised the company’s rating from neutral to buy. Previously, the firm had expressed doubts about how the company’s ‘Stubs A-List’ subscription program would sit with customers.
The ‘Stubs A-List’, costing $24 per month, allows subscribers to see up to three movies per week, with no blackout dates. Subscribers can also see films in any format, including IMAX and Dolby Cinema. The company launched Stubs A-List program after its MoviePass’ program failed last year.
‘Avengers: Endgame’s' advance ticket sales helped restore faith in the company’s subscription policies that so far have been struggling since last year. Membership in AMC's Stubs membership saw its member count grow to 19 million from last year’s 12 million members.
In addition, AMC is also looking forward to the summer sales of movies like “Toy Story 4,” “The Lion King,” “Godzilla: King of Monsters,” “Aladdin,” “Spider-Man: Far From Home,” “Detective Pikachu” and “Hobbs and Shaw,” among others.