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.
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.
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.