Box office flop: MoviePass takes all the good things about MoviePass away to survive
You guys as tired of reading about MoviePass as we are of writing about it? Well, don’t take it for granted: Soon, it could be gone.
MoviePass, whose parent company borrowed $5m last week to keep the lights on, may have finally jumped the shark: On Monday, after users reported outages on the app, they laid out their new rules to stay afloat.
‘Say hello to my little survival plan…’
MoviePass is (well, was) a service that let subscribers pay a monthly fee of $9.95 to see multiple movies a month.
But, as of Monday, the subscription service announced they will soon raise prices to $14.95 a month, and limit availability for new, major-releases (we blame Mission Impossible).
The company said the changes aim to reduce its costs by 60% as they continue to take more measures to trim the fat.
We need to talk about Helios and Matheson…
If there’s any company suffering a bigger headache over MoviePass’s existence than MoviePass, it would be their parent company, Helios and Matheson Analytics.
The company reported an average cash deficit of $45m for both June and July, and last week did a 1-for-250 reverse stock split (merging floundering corporate stock to form smaller, more valuable shares) in an effort to keep their share price above $1 and avoid being kicked off the NASDAQ entirely.
Unfortunately, it didn’t help. After MoviePass announced the new rules, Helios and Matheson’s stock plunged 60% (shares most recently clocked at $0.46), flirting yet again with being delisted off the exchange.