MoviePass has taken the movie theater business by storm in the last six months. The $10-a-month subscription service has people heading to theaters more than ever, but not all theater chains have been enthusiastic about the company’s rise.

MoviePass has had a tension-filled relationship with the country’s largest film exhibitor, AMC Entertainment Holdings Inc. AMC, -0.87% and after failing to persuade the theater chain to enter a partnership, has removed some AMC theaters as an option from its service, like its 25-screen theater in New York City’s Times Square.

MoviePass has asked AMC to share a slice of its admission fees and/or concessions revenue, as it drives more foot traffic to AMC.

“I’m 1,000% ready to do battle,” Ted Farnsworth, chief executive of MoviePass’s majority owner Helios & Matheson Analytics Inc. HMNY, +20.00% , told MarketWatch. “Hollywood is definitely paying attention to us, now we have to start pulling levers. We have to say to AMC, ‘look you don't want to deal with us, fine, but we’re not going to keep giving you free money’.’”

Farnsworth initially said he would cut ties with AMC, but MoviePass decided early Friday to pull just 10 of AMC’s more than 600 theaters instead.

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MoviePass drove more than 1 million ticket sales to AMC theaters last month, compared with 10,000 sales last July, the month before it cut its monthly subscription to $10 from as much as $50, said Farnsworth. He also said that MoviePass represents roughly 62% of AMC’s operating income.

AMC was quick to rebuke the company after the price cut, saying the business model was unsustainable.

AMC issued a statement late Friday: “AMC has taken no action to block the acceptance of MoviePass at our theaters. We have no further comment about MoviePass’s unilateral actions. We are, however, disappointed that MoviePass continues to make false statements about AMC, including when MoviePass greatly exaggerated its contributions to AMC’s profitability.”

MoviePass has been trying to bring AMC around for a while, Farnsworth said. The company has struck deals with close to 1,000 independent cinemas, in which it gets a roughly $3 cut on ticket sales and/or 25% of concessions sales.

Farnsworth is seeking a similar cut from AMC.

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One problem facing MoviePass in its standoff with AMC is the decline in value to its customers. Some have already begun complaining on Twitter.

“It’s automatically not as valuable of a service without AMC,” said B. Riley analyst Eric Wold.

MoviePass is in a tough spot, he said. On one hand, the numbers are enough to support AMC and other theaters sharing revenue with MoviePass, but at the same time, why would they when they are getting the benefit of increased foot traffic for free.

“It would only take about a 15% to 20% cut for MoviePass to break even on those subscribers,” Wold said.

Farnsworth is confident that MoviePass can ax AMC and still satisfy subscribers by promoting other theaters, such as Regal Entertainment Group Inc. and independents.

MoviePass has tested its ability to do so, Farnsworth said. About 50% of the time members drive by closer theaters to go to one MoviePass has promoted via the app.

AMC said on Twitter that it was blindsided by MoviePass’s move and that it had not heard from the company. Farnsworth said AMC has been ignoring MoviePass for a while and he has considered sending a letter to its board.

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MoviePass is essentially subsidizing what are potentially expensive moviegoing habits for its more than 1.5 million subscribers.

The average cost of going to a movie last year was $8.97, according to Box Office Mojo. In some bigger cities, like New York, ticket prices can balloon to more than $20.

MoviePass members get a Mastercard usable at nearly every theater that accepts Mastercard, and MoviePass foots the bill.

“They’re charging $9.95 per month for an unlimited number of movies; one per day. Yet in September, MoviePass paid AMC $11.88 for each and every ticket that it purchased. That’s quite a gap,” said AMC Chief Executive Adam Aron during the company’s quarterly conference call.

“We appreciate their business, but it’s also important to make clear that despite claims they’ve made to the contrary, AMC has absolutely no intention, I repeat no intention, of sharing any — I repeat, any, of our admissions revenue or our concessions revenue with MoviePass,” he said.

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When moviegoers aren’t shelling out money for increasingly expensive tickets, they tend to buy more snacks and drinks from concessions, and that’s where theaters usually make their money.

MoviePass has certainly seen incredible growth since remodeling its business, and it’s piqued Hollywood’s interest. As part of its next move to co-acquire and release films, MoviePass and independent distributor The Orchard bought “American Animals” at Sundance.

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But executives in Hollywood are watching MoviePass with skepticism as well as interest.

“They haven’t proven anything yet except that they priced themselves in a way that will grow their subscriber base significantly and quickly,” said 20th Century Fox FOXA, -2.34% distribution head Chris Aronson. “We believe MoviePass has the potential to be a force, but unless and until they are very forthcoming with data that supports their alleged market penetration (e.g. what percentage of attendance are they on opening weekend and full run of a movie?) we will be cautious in our approach and dealings with them.”