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MoviePass announced Friday the closing of the ticket service at a reduced price Saturday. Shares of MoviePass' parent company, Helios and Matheson Analytics, dropped 10% on Friday afternoon, although shares are trading for a fraction of a penny.
MoviePass' parent companies, Helios and Matheson Analytics, have informed subscribers of its intention to close the service because its "MoviePass recapitalization efforts have not been successful to date." "Strategic and financial alternatives" for the company.
Among the options being considered are the sale of the entire company, the sale of the company's assets, including MoviePass, Moviefone and MoviePass Films, as well as the possibility of a reorganization of the company. Helios and Matheson Analytics noted that any transaction would include "taking over or settling" one of its liabilities.
Before the closure of the service, MoviePass had been in trouble for over a year. Last March, MoviePass launched a new version of its unlimited package, which allows users to watch one movie a day for $ 9.95 a month, as part of an eleventh-hour attempt to reactivate the subscription service. However, the service saw its subscriber base plummet from over 3 million members to approximately 225,000 in April 2019.
In addition, MoviePass fired at least seven of its employees last month, bringing the total workforce to about 12 people, according to Business Insider.
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