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In recent months, Sinemia MoviePbad's promising competitor at the source of frustration for moviegoers across the country. After rumors came earlier this week that he would pull out of his troubled offer of movie tickets by subscription, he announced tonight that he would shut down his business in the United States.
"Today, with a heavy heart, we are announcing that Sinemia is closing and that operations in the United States are ceasing immediately," the company said in a statement on the front page.
The service also ran into monetization problems (like MoviePbad), which caused viewers to wonder just how sustainable the subscription model is. These problems were compounded by increased competition from movie theaters such as AMC offering their own services, even though Sinemia was trying to create a white label version for theaters.
In recent months, the company has been the subject of lawsuits by MoviePbad and moviegoers, who have worried about enforcement issues, hidden fees, and account closure policies.
"While we are proud to have created a service unmatched in the market, our efforts to cover the cost of unexpected legal proceedings and to raise the funds necessary to continue operations have not been sufficient," writes the company. "Competition in the US market and basic economic considerations regarding the costs of providing Sinemia's end-to-end experience ultimately led to our decision to terminate our operations in the United States."
Sinemia expressed surprise at the magnitude of the negative reactions received from its users. In a recent interview, Managing Director Rifat Oguz told TechCrunch: "We take this seriously. We review each comment. We did not find the company a year ago. It started about five years ago. We take every negative comment very seriously. "
To this end, the company has set up several sites to solve the problems of users. In the end, however, the operations were just not sustainable here in the United States. The note does not specify whether the service will continue to operate abroad in countries such as the United Kingdom, Canada, Australia and Turkey, where a large part of its staff is currently based. It is also unclear when the end of US operations will mean for the clients to whom money is owed. From the note, however, it appears that active accounts will be terminated immediately.
We asked for additional details.
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