The troubles for MoviePass continue, even though the service is no longer operating. The movie ticket subscription service, after months of cashflow troubles and aggravated customers, officially shut down in September. However, several former subscribers have recently reported suspicious charges made to their accounts following the closure of MoviePass, which raises further questions about the business practices employed by the company.
According to a new report, several former subscribers reported their credit cards being charged by MoviePass after the service was shut down on September 14. One user from Chicago says she noticed charges of $9.95 and another for $5.64. Despite multiple reports of this taking place, CEO Mitch Lowe said in a statement that the reports are false and downplayed any problematic practices on their part, writing it off as an isolated incident. Here's what Lowe had to say about it.
"One single subscriber, out of the many thousands of MoviePass subscribers, was charged $9.95 on September 15 and has been refunded that amount. We are aware that some of our subscribers have mistaken refunds appearing on their credit card statements for charges."
MoviePass made a huge splash in 2017 when it announced it would offer unlimited moviegoing for $9.95 per month. Users could see one movie a day, with few restrictions, at most any theater of their choosing, all for one extremely low price, considering the average cost of a single movie ticket in the U.S. is just shy of what the company was charging monthly. Naturally, many in the industry questioned how this would serve as a viable business model, but that didn't concern movie lovers, as subscribers signed on in mass.
Unfortunately for MoviePass' parent company, Helios and Matheson, that led to them bleeding cash, as the company was paying full price for every single movie ticket. That led to rapid changes in the terms and conditions, which frustrated subscribers. Following a string of shutdowns and issues, the service finally hung it up for good recently. However, other services have since popped up, since as AMC Stubbs A-List, Regal Unlimited the Alamo Drafthouse Season Pass. A good idea is a good idea and theater chains have found a way to make the MoviePass business model work for themselves, on their own terms.
MoviePass is facing additional heat from a recent lawsuit from Oasis Ventures Entertainment, who are suing the company over the formation of MoviePass Films. Producers Randall Emmett and George Furla were working with MoviePass on the venture, but Oasis had a pre-existing deal with them in place, which they allegedly violated. Amazingly, former Helios and Matheson CEO Ted Farnsworth, who recently stepped down from his post, given the troubles the company has faced under his leadership, is reportedly trying to buy MoviePass now. So who knows? This saga may not be good and truly over just yet. This news was previously reported by the New York Post.