MoviePass has dominated the industry for a while and now they have ended their services completely on September 14. According to reports, their efforts to recapitalize haven’t been successful.
According to a release, it is possible that there should be a sale of assets. Helios and Matheson Analytics, the Parent company of MoviePass suggested that a strategic review committee has been formed to explore and gauge the financial alternatives for the company.
Sinemia was a big competitor to MoviePass, and they dropped their prices in January and added ticket rollover. MoviePass tried to bounce back by revamping its plans. It didn’t end well as the plans were fraught by too many restrictions.
There was a report in August as to how frantically the company was bleeding in the financial aspects and changed some users’ passwords to keep them from ordering tickets. Soon it was revealed that the service didn’t encrypt the database, and it left customers’ credit card details exposed online.
The company’s all-you-can-watch movie theatre membership always seemed a little brushed around the edges. There were multiple price hikes, business model changes, shutdowns and raising a significant amount of money less than a year ago before the company decided to call it quits.
MoviePass gave its consumers quite the experience with featuring its cost of $10. MoviePass subscribers could see a movie every single day for $10 dollars a month. The company has now shut down the service with its future undetermined and bleak.
MoviePass’ CEO Mitch Lowe decided to attract a huge audience by slashing prices to half, after the price hikes in order to match the prices of streaming services like Netflix and Hulu.
“We still deeply believe in the need for the MoviePass service in the marketplace, to maintain affordable access to theaters and provide movie lovers with choices of where to go to the movies,” wrote Lowe. “Although we do not currently know what the future holds for the MoviePass service, we hope to find a path that will enable us to continue the service in the future.”