MoviePass calls it quits: The once-popular money-saving service ends Saturday

Carla Harmon
September 14, 2019

MoviePass subscribers were notified by Helios that the struggling service was being shut down because "efforts to recapitalize MoviePass have not been successful to date".

In the heady months after its launch, MoviePass's parent company, Helios and Matheson Analytics, realized it was burning through money more quickly than expected.

Helios & Matheson, the data company that bought a majority stake in MoviePass in 2017, said it has formed a committee of independent directors to explore "strategic and financial alternatives" for the company, including a sale of the firm as a whole, or a sale of all its assets, including MoviePass.

'The company is continuing its efforts to seek financing to fund its operations, ' the statement said. Sadly, there can be no assurance that any such financing will be obtained or available on term acceptable by the company's board. However, the service saw its subscriber base plummet from more than 3 million members to about 225,000 as of April 2019. Unfortunately, MoviePass never recovered after dropping that model business and is now looking for a buyer. On top of that, technical problems plagued the app, certain screenings were completely locked-out, and customer service was non-existent. In December, the company announced that it was changing its prices once again, this time adopting a tiered plan. Helios and Matheson's stock took a major hit as a result, dipping to as low as two cents.

A MoviePass data breach in Dubai may have exposed customer information. It will remain an early leader in introducing the movie ticket subscription service that has since been adopted by AMC Theatres, Regal Cinemas and Alamo Drafthouse.

MoviePass seemed like it was too good to be true and, it turns out, it was.

Although it failed, MoviePass did show other businesses that movie theater subscriptions could be a viable business.

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