Moviepass is likely running negative gross margins on those expensive urban theaters and this is a hardball tactic to get AMC to the negotiating table to bring those visit costs down. It is a risky move given the Moviepass provides no other direct value to the theaters outside of demand aggregation (putting aside the data play). Given the theater business is somewhat of an oligopoly, we may see the theaters react by consolidating (through partnerships, or outright) in order to increase supplier power. This will be an interesting story to watch as the conflict plays out.