Subscription Movie Ticket Service MoviePass Officially Shutting Down

[MacRumors]

Struggling movie ticket subscription MoviePass is finally shutting down after months of questionable policy changes and what seems like a never ending stream of negative press due to an inability to make money.

In a press release shared on Friday, MoviePass parent company Helios and Matheson Analytics said that the MoviePass service would be shutting down for all subscribers on September 14, 2019 because efforts to recapitalize the service "have not been successful to date."

At this time, the company says that it is not able to predict if and when the MoviePass service will resume though it is "continuing efforts to seek financing to fund its operations."

MoviePass first launched its unlimited plan in 2017, promising customers unrestricted movie access for $9.99 per month, an effort that failed catastrophically within a matter of months.

MoviePass was providing customers with debit cards and paying full price for each movie ticket despite the low monthly fee, with the expectation that deals with movie theaters and customer data would make up for the cost.

In mid-2018, MoviePass ran out of money and was reportedly losing up to $40 million per month, and at that point, the company began cutting back on the quality of service by limiting movie access, raising prices, and even temporarily shutting down.

MoviePass even tried changing the passwords of its most active users in an attempt to save money.

Despite all of its efforts, MoviePass has not managed to retain enough customers to be profitable (going from three million subscribers last year to 225,000), and it hasn't helped that in August, an unencrypted MoviePass database leaked thousands of customer records.


Article Link: Subscription Movie Ticket Service MoviePass Officially Shutting Down

 

[hlfway2anywhere]

I appreciate what they were trying to do but also good riddance.

 

[lobbyist]

Never understood how this business model is even legal in the first place. I never used it (I’m in Canada) and don’t really know how the whole thing works but it always seemed shady to me.

 

[yaxomoxay]

Never understood how this business model is even legal in the first place. I never used it (I’m in Canada) and don’t really know how the whole thing works but it always seemed shady to me.

It wasn’t shady at all. Just messed up. I enjoyed using it last year or two years ago, but AMC A-List is much better.

 

[now i see it]

Uber is next

 

[michael31986]

Uber is next

What why?

 

[Xenomorph]

Seeing ONE movie usually costs more than $9.99... What kind of business model was it to sell "UNLIMITED" movies for $9.99?

 

[fribhey]

What why?

probably because, like MoviePass, uber doesn't make money

 

[ghostface147]

Seeing ONE movie usually costs more than $9.99... What kind of business model was it to sell "UNLIMITED" movies for $9.99?

Apparently an unsuccessful one. Such a shady company, especially when they just reset your password to save money.

 

[Compile 'em all]

Seeing ONE movie usually costs more than $9.99... What kind of business model was it to sell "UNLIMITED" movies for $9.99?

Because most people won’t actually manage to go watch a movie once a month in the cinema.

 

[kazmac]

Took a lot longer than I expected. They were hemorrhaging $ from the start and pulled a lot of BS on customers to try to stay afloat.

The one good thing is that movie chains started subscription services too, so that can be good for the audience.

 

[scottcampbell]

They actually reset passwords?

Good riddance, scummy company.

 

[michael31986]

probably because, like MoviePass, uber doesn't make money

Who said tgat? Never heard of that.

 

[farewelwilliams]

i'm so shocked. /s

 

[Unity451]

Uber is next

In California, at least. Thanks Governor Newsom!

 

[Nabby]

Seeing ONE movie usually costs more than $9.99... What kind of business model was it to sell "UNLIMITED" movies for $9.99?

They make up for it in volume!

 

[dannyyankou]

I was so close to signing up before any of the controversies happened. But a voice of reason in my head said “if it looks too good to be true, it probably is”.

 

[thisisnotmyname]

shocking!


not really.

 

[dampfnudel]

What why?

Well, usually companies that keep losing money eventually go out of business or at least they should because I’m sure you would agree that investing a ton of money into a business that keeps losing money for years and years is dumb. That’s Uber in a nutshell. I know Uber is hoping for automated vehicles to become a safe and reliable reality sooner than most experts have predicted so they keep manipulating investors into believing their Ponzi scheme is the real deal. Now, if California passes AB5 which forces companies like Uber to treat everyone who works for them as full employees of the company instead of contractors/freelancers, things may get very dicey for a shady company like Uber. In other words, Uber may be next (among others). Uber can pull out of California, their home state, but what happens when they have to pull out of New York? Other states? The investor gravy train ends.

 

[scottcampbell]

probably because, like MoviePass, uber doesn't make money

What is Uber's overhead?

Their cost of doing business is server and app tech. Otherwise, they're just the middle-man in a financial transaction (exactly where a business wants to be).

 

[danny842003]

What is Uber's overhead?

Their cost of doing business is server and app tech. Otherwise, they're just the middle-man in a financial transaction (exactly where a business wants to be).

I mean that’s not their overheads though. I’m not saying Uber will go bust but they must spend a hell of a lot on advertising.

 

[Chaos123x]

It's a real shame. The service was a great idea and I went to the movies more last year than I did when I was teenager. A great way to see all the latest movies without breaking the bank.

Movies are too expensive to pay go to every week nowadays, take a date and buy some popcorn and you are talking booku bucks.

Streaming isn't the answer all they offer is shows, I don't want shows I want to see recent Hollywood movies.

Renting on-demand is also too high $5-$7? Better off just buying for a few bucks more.

Since MoviePass stopped working I went back to redbox, it's unfortunately still the best way to see recent Hollywood films.

 

[acarney]

Kind of a sad day, but was obviously heading towards this for the last couple years. It’s sort of sad Regal or AMC didn’t buy them out instead of setting up their own subscription plans. Well MoviePass changed the market, which is what they always said their goal was.

I’ve been a member since early 2012 and remember when I had to PRINT OUT a voucher to take to the theater and the person had to manually key in a code to redeem for a ticket. Over the years I probably saw 800+ movies in theaters with MoviePass. I averaged approx 2 to 3 movies a week and loved it.

I’m sure it drove concession sales with me. It flat out had to, I went from one movie every other month or so to 8-12 movies a month with about 30 to 50% of the time getting at least a soda. The model certainly could have worked with partnership or acquisition by a theater chain.

 

[dmylrea]

Because most people won’t actually manage to go watch a movie once a month in the cinema.

Sadly, that was me. They definitely made money off my 1 year subscription. It sounded good, but I should have related it to a gym membership and realized I'd never go.

 

[acarney]

Sadly, that was me. They definitely made money off my 1 year subscription. It sounded good, but I should have related it to a gym membership and realized I'd never go.

Don’t worry, I made up for you