MoviePass Owners Put Shuttered Service Up for Sale, Ending Drama

For a fleeting moment in time Movie Pass subscribers could see a movie a day for just $9.95 a month

MoviePass posted a notice on its homepage today notifying customers of the shut down.

The end result, according to MoviePass, is that, "effective at 8 a.m. E.T. on September 14, 2019, we must interrupt service for all current MoviePass™ subscribers".

Helios and Matheson Analytics Inc. now owns approximately 92% of the outstanding shares (excluding options and warrants) of MoviePass Inc., 100% of the outstanding membership interests in MoviePass Ventures LLC, 51% of the outstanding membership interests in MoviePass Films LLC, and the Moviefone™ brand and service.

"The Company is unable to predict if or when the MoviePass service will continue", Helios and Matheson said in the statement. Last March, MoviePass launched a revamped version of its unlimited plan, which let users watch one movie per day for $9.95 per month, as part of an eleventh-hour attempt to revive the subscription service. They continued, "The Company is continuing its efforts to seek financing to fund its operations".

From the start, the surprisingly low subscription fee and surging subscriber base prompted many in the film industry to wonder how sustainable MoviePass' business model actually was.

Just before the July 4 holiday, MoviePass said it was suspending service for several weeks to fix technical issues and finish work on a new version of its app. 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.

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

For consumers, the service had seemed nearly too good to be true.



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