MoviePass is struggling even more than we thought. And quite frankly, it's been pretty clear for some time that the service has been in trouble. At one point, it looked like MoviePass was going to be a savior for movie buffs in an era when it can be quite expensive to go to the movies regularly. For just $10 a month, we could go see a movie every day. Was it too good to be true? Yes. Now it's very clear that everyone is wise to that as the service has seen their subscriber base plummet.
According to a new report, MoviePass has seen more than 90 percent of its subscriber base leave the service in less than a year. In June 2018 it was reported that the movie ticketing service had hit 3 million subscribers and was looking to truly shake up the traditional movie business in a big way. Unfortunately, things that sound too good to be true almost always are. Amidst outages with the service, price fluctuation and many other issues, that subscriber base has now plummeted to just 225,000.
In summer 2017, MoviePass made the splashy announcement that they were offering moviegoers the chance to see a movie every day at a theater of their choosing (most major movie theaters allowed the use of MoviePass, despite concerns) for just $10 a month. There were a few catches. Users couldn't buy tickets ahead of time and IMAX or 3D screenings weren't included. But beyond that, subscribers really could go see a movie every single day, if they so chose. As such, the service saw 100,000 people sign up in the first 48 hours.
Unfortunately, that caused a great many headaches for the service's parent company, Helios and Matheson, as they were bleeding cash. Millions and millions of dollars. The problem is, the company was paying full price for each and every ticket. Granted, the majority of users were only seeing a few movies a month, but even at that rate, they were taking a loss. As a result, their stock prices took a nosedive and they were forced to make changes. Unpopular changes. Service outages were reported. Users couldn't see some of the most popular releases out at that time. Repeat viewings were axed. Prices were altered. It all became too much of a hassle for those who signed up. Now, MoviePass is left with a mere fraction of what they once had. Even their recently unveiled Unlimited plan for $14.95 a month didn't do much to help their cause.
Still, their impact on the industry is still being felt. AMC, Regal and the Alamo Drafthouse have all launched, or are getting ready to launch, their own subscription ticket services. MoviePass had a great idea, they just weren't able to execute their own idea in a way that allowed them to stay atop their own game. Pour one out for MoviePass, movie lovers. This news was previously reported by Business Insider.