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Movie Pass continues the fight to survive. The company has dubbed the "Netflix of movies". And their last plan may look good on the surface But the devil is in the details. Mercer Morrison from Buzz60
Buzz60

MoviePass application and smartphone.(Photo: MoviePass)

NEW YORK – MoviePass, the discount movie ticket subscription service in trouble, is created by the company that owns it.

Helios and Matheson Analytics Inc. did not attempt to mask the reasons for this decision on Tuesday. MoviePass has become a burden.

MoviePass has attracted millions of subscribers, attracting them with a monthly fee of $ 10. But that turned out to be expensive. 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. At one point, Helios and Matheson had to take out a $ 5 million emergency loan to pay for their payment processors after missed payments caused downtime.

More: "We have not misled investors": MoviePass denies having committed wrongdoing as part of an investigation into a fraud in N.Y.

More: Check your emails: MoviePass requires some old customers to re-register, unless they opt out

More: A MoviePass executive resigns, citing management issues within a fashionable ticketing service

Then last week, the company admitted that the Attorney General of New York was investigating allegations that it misled investors.

Helios and Matheson, based in New York, say they have not misled anyone and filed all public revelations in a timely and truthful manner.

"Since we acquired control of MoviePass in December 2017, HMNY has become largely synonymous with MoviePass in the eyes of the public, which leads us to believe that our shareholders and the market perception of HMNY could benefit from the separation. of our film-related assets from the rest of our company, "said President and Chief Executive Officer Ted Farnsworth in a prepared statement.

The shares of Helios and Matheson, which is a data society, have been punished all year long.

MoviePass Entertainment should be on the Nasdaq or in an alternative market.

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