MoviePass temporarily suspends its service, from July 4 to complete work on mobile app improvements, the company announced today. Hiatus comes after a difficult year for the cash-burning company, and as Regal, the second largest movie theater in the United States, is preparing to launch its own ticket subscription service.
MoviePass & # 39; the announcement said the hiatus starts at 5:00 Eastern Time on July 4, and that subscribers are automatically credited for the number of days affected when the service resumes. It didn't say when the service was to return, but replies to customers from its Twitter account say the company "estimate [s] this process will take several weeks."
This is a particularly unattainable time for a hiatus because the 4th of July holiday is when many big titles are released. In a press release, MoviePass's CEO Mitch Lowe stated, "There is never a good time to do this. But to complete the enhanced version of our app, one that we believe will provide a much better experience for our subscribers, it must be done."
He added that "We have listened and we understand the frustrations of our subscribers. In order to provide the level of service you deserve and we can be proud of, we need to improve our mobile app. We plan to make this improvement by using an enhanced technology platform, which is in the final stages of completion. "
MoviePass (owned by Helios and Matheson Analytics) and competitor Sinemia offer both subscription plans that allow users to access multiple movies in a month for a flat fee, but they have been locked in a costly demeanor war as they compete for subscribers and cash account sales. Both companies have also been hit with constant complaints about poor customer service. When Sinemia was launched, it could capitalize on anti-MoviePass sentiment, but quickly began raising its own negative feedback on hidden fees, cancellations without repayment, and poor app performance.
This allows room for new rivals to enter. For example, AMC's A-List service reached 785,000 subscribers in May, and if Regal's version is going to work, it may also appeal to movie guys willing to stick to a chain in exchange for consistent service.