Business is not going smoothly for movie subscription service MoviePass, which is supposed to allow customers to watch one movie in theaters per a day for a $9.95 per month subscription pass.

Amid funding issues and a deep drop in stock prices, MoviePass CEO Mitch Lowe today held an all-hands meeting where he told employees that customers will be restricted from seeing major movie releases that include "Christopher Robin" and "The Meg."

moviepasspeakpricing

MoviePass' Peak Pricing

The information comes courtesy of an employee who shared the news with Business Insider, and it comes just after MoviePass prevented many of its subscribers from seeing "Mission Impossible: Fallout," the major movie release last weekend.

In addition to informing employees that subscribers will not be able to see "Christopher Robin" and "The Meg," on opening weekend Business Insider says that Lowe also "implied that the practice of not offering tickets to major movies would continue for the foreseeable future." Lowe's announcement echoed a statement MoviePass released over the weekend suggesting that "certain movies may not always be available in every theater on our platform."

"Christopher Robin" is set to be released this weekend, while "The Meg" comes out on August 10.

MoviePass has been forced to restrict access to popular movies due to financing issues, with reports indicating the service was down last week after parent company Helios & Matheson ran out of money, only restoring the service after securing a loan for millions.

To prevent another shutdown, customers in many markets were not permitted to see "Mission Impossible: Fallout," and MoviePass has also implemented surge pricing for popular titles that customers have complained are affecting nearly every movie even at non-peak times.

moviepassoutage

Image via Twitter

At the time of this article, MoviePass appears to be down once again, with subscribers seeing a blank screen instead of movie options. MoviePass has not yet commented on today's outage, but the MoviePass website continues to allow new subscribers to sign up.

Top Rated Comments

moabal Avatar
45 months ago
Obviously this business model is not going to work long term. Simple math.

They were trying to grow quickly in the hopes to monetize the data they collect. The issue is they went bankrupt before they could do that. There are other subscription services out there that try to make a profit on a per customer basis rather than trying to have the people who rarely use MoviePass subsidize those who abuse it.

The only conceivable way forward for these types of subscription services are subscriptions per movie theater/chain that is less generous than MoviePass.
Score: 18 Votes (Like | Disagree)
scuac Avatar
45 months ago
THis pyramid scheme is finally crumbling, surprised it lasted this long.
Score: 11 Votes (Like | Disagree)
maflynn Avatar
45 months ago
So tell me again, why do I want to pay a monthly subscription to see movies, when the movies, I want to see are excluded? I can't see them being very successful over the long haul
Score: 9 Votes (Like | Disagree)
CarlJ Avatar
45 months ago
They are incompetent at best, and I hope their CEO goes to the kind of prison where they address his complaints about unwanted shower intimacy in the same way he addressed my cancelation request.
You are sincerely hoping the CEO goes to prison and gets raped? And gets no help from the guards? Neat.
[doublepost=1532993301][/doublepost]
So tell me again, why do I want to pay a monthly subscription to see movies, when the movies, I want to see are excluded? I can't see them being very successful over the long haul
Well, that works out, because MoviePass won't be here for the long haul. Their business plan was always unsustainable. It was basically, "sell someone else's prestige product at a loss, and then persuade that company to cut you a deal so you get more money and they get less, all while making their customers think that prestige product is overpriced." The theater chains were never going to go for that.
Score: 9 Votes (Like | Disagree)
zorinlynx Avatar
45 months ago
It figures that people would pay for an entire year in advance, then they would alter the deal a few months in. Anybody who can do math has to know this service would be unsustainable? Especially with MoviePass paying full retail price for the tickets, even requiring you to put them on a special MoviePass debit card?

MoviePass should be required to offer a refund to customers who signed up before they changed the terms. It's like Darth Vader at Bespin; do they just have to pray they don't alter the deal further?

Either way, this service won't last much longer as is.
Score: 7 Votes (Like | Disagree)
mattyj2001 Avatar
45 months ago
It figures that people would pay for an entire year in advance, then they would alter the deal a few months in. Anybody who can do math has to know this service would be unsustainable? Especially with MoviePass paying full retail price for the tickets, even requiring you to put them on a special MoviePass debit card?

MoviePass should be required to offer a refund to customers who signed up before they changed the terms. It's like Darth Vader at Bespin; do they just have to pray they don't alter the deal further?

Either way, this service won't last much longer as is.
Too bad they don't have any money to pay those refunds! Yearly subscribers are kind of in a bind. Even if there's a class action lawsuit against them, they don't have any assets to pay anyone.

I'm pretty sure the business model 'buy something at full retail price, sell it for less' has never worked out for anyone in the history of commerce.
Score: 7 Votes (Like | Disagree)

Popular Stories

iPhone 14 Mock pill and hole thumb

ProMotion Now Expected to Remain Exclusive to iPhone 14 Pro Models, Not Expand to Entire Lineup

Sunday January 16, 2022 8:56 am PST by
Continuing the tradition set with the iPhone 13 Pro, only the highest-end iPhone 14 models will feature Apple's ProMotion display technology, according to a respected display analyst. Ross Young, who on multiple occasions has detailed accurate information about Apple's future products, said in a tweet that ProMotion will not be expanded to the entire iPhone 14 lineup and will remain...
AirPods Pro Gen 3 Mock Feature Red

AirPods Pro 2 Could Start a New Accessory Ecosystem

Friday January 14, 2022 2:34 am PST by
Apple's second-generation AirPods Pro could arrive alongside a new series of accessories, recent leaked images suggest. Alleged leaked photos of the next-generation AirPods Pro obtained by MacRumors showed a charging case with a metal loop on the side for attaching a strap. Apple has not used this design for any of its other AirPod models and it is unclear why it would be added in this...
Unlikely Products 2022 Feature

Six Rumored Apple Products You're Unlikely to See This Year

Saturday January 15, 2022 2:06 pm PST by
Much has been said about what consumers could see from Apple in 2022, but the company is also working on a handful of rumored products that aren't expected to be unveiled for at least another 12 months, and in some cases a lot longer. Of course, that's assuming they get released at all. Apple works on many potential products some of which ultimately never see the light of day. With that in...
safari icon blue banner

Safari Bug Allows Websites to Track Your Recent Browsing Activity in Real Time

Sunday January 16, 2022 3:37 pm PST by
A bug in WebKit's implementation of a JavaScript API called IndexedDB can reveal your recent browsing history and even your identity, according to a blog post shared on Friday by browser fingerprinting service FingerprintJS. In a nutshell, the bug allows any website that uses IndexedDB to access the names of IndexedDB databases generated by other websites during a user's browsing session....
ipad air 4 video

New iPad Air Rumored to Launch This Spring With A15 Chip, 5G, Center Stage Camera, and More

Saturday January 15, 2022 8:05 pm PST by
Apple is planning to release a fifth-generation iPad Air with similar features as the sixth-generation iPad mini, including an A15 Bionic chip, 12-megapixel Ultra Wide front camera with Center Stage support, 5G for cellular models, and Quad-LED True Tone flash, according to Japanese blog Mac Otakara. Citing reliables sources in China, the report claims that the new iPad Air could be...
netflix2

Netflix Again Raises Prices for All Plans, 4K Streaming Now $20 Per Month

Friday January 14, 2022 12:46 pm PST by
Netflix today updated the prices for its streaming plans, and all of its offerings are now more expensive. The Basic plan is now priced at $9.99 per month, the Standard plan is priced at $15.49 per month, and the Premium plan is priced at $19.99 per month. The Basic plan is $1 more expensive, up from $8.99 per month. This plan allows users to watch on just one screen at a time, and it limits ...
top stories 20220115

Top Stories: iPhone 14 Pro Rumors, iCloud Private Relay Controversy, iOS 15.2.1 Released, and More

Saturday January 15, 2022 6:00 am PST by
Hole-punch? Pill? Hole-punch and pill? Rumors about what the front camera system on the iPhone 14 Pro will look like are evolving rapidly, and it now appears we might be getting a novel but potentially controversial design later this year. Other major stories this week included some confusion and controversy about iCloud Private Relay being disabled for some T-Mobile customers, increasing...
iPhone 14 Mock pill and hole 16x9 120hz

Analyst: All iPhone 14 Models to Feature 120Hz Displays, 6GB of RAM, and More

Friday January 14, 2022 7:02 am PST by
Apple is rumored to announce four new iPhone 14 models in September, and ahead of time, analyst Jeff Pu has outlined his expectations for the devices. In a research note with Haitong International Securities, obtained by MacRumors, Pu claimed that all iPhone 14 models will feature ProMotion displays, compared to only Pro models currently. ProMotion enables a variable refresh rate up to 120Hz ...