Subscription Movie Ticket Service MoviePass Officially Shutting Down

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.


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9 weeks ago

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.
Rating: 5 Votes
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9 weeks ago

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.
Rating: 4 Votes
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9 weeks ago
I appreciate what they were trying to do but also good riddance.
Rating: 4 Votes
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9 weeks ago

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.
Rating: 3 Votes
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9 weeks ago

Uber is next

What why?
Rating: 3 Votes
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9 weeks ago

Uber is next

In California, at least. Thanks Governor Newsom! o_O
Rating: 2 Votes
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9 weeks ago
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”.
Rating: 2 Votes
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9 weeks ago

If a company is losing money because it is building market share and its business, it may make a great business plan. Amazon, for example, lost money for a decade before it made it first yearly profit, and then for several years made anemic profits.


Exactly. Amazon could have made profits sooner... but they decided to roll every cent of profit back into the company.

And look where they are today. Once just a bookseller... now they sell everything. And they also make tons of money selling web services to many major corporations. They have become an integral part of the internet.

Amazon is the poster-child of "money-losing startup turned billion-dollar business"

Then there are other companies like Spotify where there was never a hope of profit. It's nearly impossible to build a company just selling subscriptions to streaming music. Like you say... the more customers they have... the more costly it becomes. It's an uphill battle as their expenses always outweigh their revenue.

Spotify is trying to diversify by offering podcasts or whatever. But they will never overcome the cost of the basic product they're trying to sell: licensed music.

As good as Spotify is... and as much as people love it... it's a terrible business.

I think I read that for every $1.00 Spotify gets in revenue... it actually costs them $1.20. You can't run a business like that. :)
Rating: 2 Votes
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9 weeks ago

What why?

probably because, like MoviePass, uber doesn't make money
Rating: 1 Votes
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9 weeks ago
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.
Rating: 1 Votes
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