MoviePass has lost their executive vice president. Khalid Itum has left the company after inside sources claimed that he had largely been absent over the last several weeks. CEO Mitch Lowe, who had previously taken a step back from the embattled subscription service is now back taking care of the day-to-day operations that Itum was once responsible for. Several rounds of recent layoffs have not helped matters for MoviePass or MovieFone, which they purchased back in 2018.
According to a statement from a MoviePass spokesperson, Khalid Itum left the company to "pursue his entrepreneurial and travel pursuits." The spokesperson went on to say that chief technology officer Joey Adarkway and human resources head Jake Peterson, are "transitioning from full time employees to contracted consulting roles." It's unclear where the movie subscription service will move on to now. You can read the rest of the statement below.
"As previously stated, MoviePass has moved in a new strategic direction, and will be refocusing our business model to create a more closely connected relationship between our subscription service and original content production unit, MoviePass Films. This strategic shift has been accompanied by changes within the company."
The news of Khalid Itum leaving the company comes after MoviePass parent Helios and Matheson Analytics reported that the subscription service had fewer subscribers than previously announced, causing the firm to restate its revenue downward by 8.2% and its losses upward by 7.7%. It's actually pretty amazing that the company has been able to hold on for as long as it has. With that being said, predictions of the end of MoviePass have been going on for the last year, though this seems like a pretty significant blow to the flailing subscription service.
Khalid Itum had previously announced yet another change to the MoviePass subscription service in an effort to drum up more business. New packages with realistic promises were announced with a promise of another unlimited plan coming soon. Subscribers were not happy with another set of changes and many have been looking for a way to cancel their subscriptions, which is easier said than done. MoviePass is also currently battling multiple class action lawsuits from subscribers who claim that they defrauded its customers by changing the terms of its subscriptions without notice and insinuated that the service was using "bait and switch" tactics.
While MoviePass continued to go down the tubes, other subscription services started to sprout up that consumers have been happy with. As for Khalid Itum, it was revealed last month that he was reportedly charged in 2010 with stealing thousands of dollars from an old employer. Itum reportedly pleaded guilty to second degree theft. However, the former MoviePass VP denies the charges now and calls them "bogus and ill-intentioned." Regardless, Itum has left MoviePass and the future of the subscription service does not look good at the moment. Business Insider was the first to report about Khalid Itum leaving the subscription service.