MoviePass is officially finished. The company has shut their doors as of Saturday, September 14th. Subscribers were alerted yesterday (September 13th) that the subscription service was shutting down just 24 hours later, which was not a big surprise to anybody who has been following the service's story for the past two years. The $9.95 subscription plan to see unlimited movies every month was exactly what it appeared to be: too good to be true. Over the years, parent company Helios and Matheson Analytics has been losing a lot of money and finding themselves in hot water with subscribers and the New York Attorney General.
Helios and Matheson Analytics has announced that its "efforts to recapitalize MoviePass have not been successful to date," which is a massive understatement. The subscription service lost $329.3 million in 2018 alone and things have not gotten better. With that being said, Helios and Matheson Analytics are still trying to figure out a way to keep the business up and running. They had this to say in a statement to subscribers.
"The company is continuing its efforts to seek financing to fund its operations... The company is unable to predict if or when the MoviePass service will continue."
MoviePass shut down in July due to an app overhaul and never fully regained full functionality afterwards as many subscribers were not able to access their accounts. MoviePass CEO Mitch Lowe reached out to subscribers, who have all been promised refunds for the remainder of what they have paid for, talking about their efforts to provide a worthy service. It's unclear how the service will be able to provide said refunds. Lowe had this to say about the demise of the service.
"In the course of this industry transformation, MoviePass has experienced setbacks and challenges that are well known. Nevertheless, MoviePass remained committed to leading and competing in an industry that is resistant to outside competition and change."
MoviePass attempted to shift gears over the past year and offered different plans to stay afloat, but all they seemed to do was anger subscribers. They ditched the $9.95 plan and introduced new plans, which were obviously not what subscribers were originally attracted to. The service has since been slapped with a class-action lawsuit by subscribers claiming the change in the "unlimited" plan was a deceptive "bait-and-switch" tactic.
The news kept getting worse as MoviePass subscribers claimed they were unable to access their accounts to see any movies at all. Then the company announced that subscriber personal data had been compromised, which included credit card information. Now, the New York Attorney General is looking into whether or not Helios and Matheson Analytics purposely misled investors. It's pretty amazing that MoviePass was able to keep the doors open for as long as they did, but it's all over now. Customers will reportedly be automatically be refunded without having to contact the company. You can read the entire statement to subscribers over at MoviePass.