Helios and Matheson Analytics Inc (NASDAQ: HMNY) is having an incredibly strong day in the market today, and for good reason. The company is gaining as its competitor, Netflix (NFLX), announced that it will be increasing its prices yet again. Before we get into the details here, we’d like to extend a big thank you to our friends at Trade Ideas for being the first to alert us to the gains. At the moment (10:58), HMNY is trading at $13.64 per share after a gain of $1.22 per share (9.83%) thus far today.
HMNY Gains On NFLX Price Increase
As mentioned above, Helios and Matheson Analytics is having an incredibly strong day in the market today after it was announced that a key competitor to the company, Netflix, will be increasing its prices yet again.
Early this morning, Netflix announced that it would be increasing its prices for middle and top-tier subscribers. The middle tier, known as standard, will be increasing in price from $9.99 per month to $10.99 per month. The top tier of the NFLX service, known as premium, will be increasing from $11.99 per month to $13.99 per month. Nonetheless, HMNY investors seem to be enjoying the news, and for good reason!
Why This Is Good News
As most reading this know, HMNY and NFLX are competitors in the entertainment space. While their services are very different from one another, they both focus on movie-related entertainment. You see, Netflix offers a service where consumers can stream unlimited video content at home for a monthly fee. On the other hand, Helios and Matheson Analytics has what’s called MoviePass.
With MoviePass, customers have the ability to pay one low monthly fee and go to the movie theater every day if they would like to. That fee is only $9.95 per month. When the fee was reduced, demand started to climb. In fact, in a single month, subscriptions flew from around 20,000 to more than 400,000 and counting. Now, as Netflix continues to become more and more expensive, chances are that more and more consumers will opt for the MoviePass service offered by HMNY. So, considering the price hike at NFLX, subscription growth for MoviePass is likely to climb even more!
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on HMNY. In particular, we’re interested in following the continued growth in MoviePass, as we believe that this product is likely to make many millionaires in the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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