We all knew it was too good to be true, but we didn’t want to believe it. If you’re a movie lover, chances are you have been taking advantage of the subscription service MoviePass. For just $10 a month (depending on when you signed up) you can watch one movie a day.
For someone like me who lives in Los Angeles, this is an absolute steal. Most theaters around here charge $15 or $16 per ticket, so even if you saw just one movie a month, the service would still be worth it. I’ve saved so much money over these past few months, probably over $150, ’cause I watch a lot of movies.
But sadly, it looks like the company might be running out of money. According to a report from Bloomberg, MoviePass parent company Helios & Matheson Analytics has just $15.5 million in the bank, which is not good because they’ve been spending close to $21 million a month.
“The future doesn’t look promising for the company, and its stock price has responded accordingly, with shares dropping more than 31 percent by the close of trading. The general assumption has been that MoviePass could never maintain its current business strategy over the long term, but these latest financial revelations appear to indicate a real inflection point. Each new report is damaging the most essential part of the MoviePass brand: the assumption that the service will stay in operation in some form, and that new subscribers will be able to get their money’s worth.”
The only hope for this service is if they bring in another investor or finally convince theaters to do a little revenue-sharing.
“Part of the MoviePass plan has been to get theater chains to cut the service in on ticket sales and concessions revenue it generates, which would offer a fresh stream of income right when Helios & Matheson needs it most. “
But most theaters are not interested in the idea, at least not right now.