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NEW YORK (AP) – MoviePass, the movie ticket subscription service that allowed subscribers to buy up to three movie tickets a month for a nominal fee, was closed Saturday.
His future is not clear.
Helios and Matheson Analytics, the parent company of MoviePass, announced Friday in a publication that they were interrupting service for all their subscribers, as their fundraising efforts failed.
It is said that he is "unable to predict whether or when" MoviePass will continue. The company has announced its intention to study all options, including the sale of the company in its entirety.
MoviePass has attracted millions of subscribers, initially attracting them with a monthly fee of $ 10. But that turned out to be unbearable. Because MoviePass usually pays theaters the total cost of tickets – $ 15 or more in big cities – a single movie can put the service in the red. The company was forced to make changes. These efforts, however, never stopped the losses.
Mitch Lowe, CEO of MoviePass, wrote in a letter to subscribers on his website: "In August 2017, MoviePass began a transformation of the film industry by introducing its monthly subscription service at a low price. Since then, other players in the sector have followed our example. "
MoviePass stated that it would offer subscribers an "appropriate" refund of the period of service already paid. Subscribers will not need to request a refund or contact MoviePass Customer Service to receive a refund. Subscribers will not be charged when the service is interrupted, according to the website.
Helios acquired a majority stake in the subscription service in 2017.
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