We knew this day would come. Now, with great sadness, we report that MoviePass has terminated its dreamy $10-a-month, 1-movie-a-day subscription plan — with no return in sight.
In its place, MoviePass is offering a bundle package that includes 4 movies per month, along with a 3-month trial of iHeartRadio All Access for $29.85.
The promotion comes as the company looks to increase its subscriber base — similar to a previous temporary offer for new subscribers that came out to $7.50 a month for the first year. But… iHeartRadio??
While the bundle deal is temporary, the 4 movies a month rule unfortunately is indefinite according to the company’s CEO. The question is — why?
Well, they aren’t making any money. Literally.
Since MoviePass began, everyone’s big question was, how are these guys making money?
As it turns out, they aren’t. While the company hit 2m subscribers in February, they lost money on every subscriber, according to Variety.
MoviePass’s parent company, Helios & Matheson (who bought it for $27m last August), disclosed they lost $150m last year, and according to auditors, the size of the loss raises “substantial doubt” about MoviePass’s ability to continue.
That said, MoviePass remains confident it will survive the financial hemorrhage — and expects to be cash flow positive by 2019 through ad sales and selling subscriber data.
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