قالب وردپرس درنا توس
Home / Business / MoviePass ends the race, 2 years after millions signed up

MoviePass ends the race, 2 years after millions signed up



MoviePass, the fast-growing but troubled subscription service that offered movie buffs a variety of low-cost plans to watch movies, said Friday it was closing.

The company, which became a cultural phenomenon for the whole You can eat movie buffets, but struggled with investors to find a working business model, said in a letter to subscribers that it would shut down Saturday morning because the work to recapitalize the business "does not has been successful to date. ”

In many ways, MoviePass was a victim of its own success.

The company was founded in 201

1 and did not take off until 2017, led by Mitch Lowe, a former CEO of Netflix and Redbox, and Theodore Farnsworth, CEO of Helios + Matheson, the publicly traded entity that purchased MoviePass that year.

MoviePass & # 39; s model paid the movie theaters full price for each admission, with expectations of making money because in traditional subscription economics, more people sign up for a service than use it. But that model burst into 2017 when the new leaders, Mr. Lowe and Mr. Farnsworth, set the fee at $ 10 a month. The low price entitles members to watch a movie every day in theaters, including new releases.

Helios + Matheson said late Friday that it had formed a strategic review committee to explore "strategic and financial alternatives", including a possible sale of the company as a whole, a sale of some of its assets or a reorganization.

"We still believe deeply in the need for the MoviePass service in the market, to maintain affordable access to cinemas and give movie lovers the choice of where to go to the cinema," the company wrote to subscribers. But, it said, "at this time we cannot predict whether or when the MoviePass service will continue."


Source link