The story behind the MoviePass subscription service has certainly been quite a roller coaster ride over the last couple of years but it appears that we will now be able to close the book on this ill-fated attempt to disrupt how consumers purchase tickets for their favorite films. The service has officially been shut down as of today according to an announcement from parent company Helios and Matheson Analytics Inc.
This does not mean that MoviePass is completely dead at this point. The parent company is working to obtain financing to bring back the subscription service though the tone of the announcement does not sound particularly optimistic. “The Company is unable to predict if or when the MoviePass™ service will continue. The Company is continuing its efforts to seek financing to fund its operations. There can be no assurance that any such financing will be obtained or available on terms acceptable to the Committee,” noted executives at Helios and Matheson Analytics Inc.
MoviePass offered a subscription service which allowed consumers to watch movies at their local theaters in exchange for a monthly fee. At the peak of its popularity MoviePass allowed consumers to watch an unlimited amount of movies at the theater for just $9.99 USD per month.
The problem is that the company would have to purchase these tickets from theaters at full price while only bringing in about ten dollars every month from each subscriber. Heavy users of the service – those that would watch at least one money every single day – would cause the company to quickly burn through its cash reserves.
Sinemia – a similarly ill-fated subscription service for movie theaters – abruptly shut down operations within the United States earlier this year.