×
You will be redirected back to your article in seconds

MoviePass Claims Momentum Despite Losing $126.6 Million Last Quarter

It probably wasn’t the way that MoviePass and Helios & Matheson imagined spending their one-year anniversary. On Tuesday, the two companies that have upended the exhibition industry with their low-cost subscription service revealed that MoviePass lost an astonishing $126.6 million during the most recent fiscal quarter.

Moreover, the struggling company said it was burning through $73 million a month, and had only $15.5 million in cash on its balance sheet. It has lost more than $219 million since the beginning of the year.

Wall Street wasn’t impressed. Helios and Matheson, which bought MoviePass 12 months ago, saw its shares plunge, falling 15% to 4 cents. The company has already undergone a stock split so it can continue to be listed and may be forced to undertake another one if it wants to boost shares above $1 and remain on the Nasdaq. Compounding its myriad issues, Helios and Matheson is facing two federal class-action complaints for allegedly making “false” or “misleading” statements.

In a press release billed as a “progress report,” MoviePass reflected on its journey since joining the Helios family. The service has been on a meteoric rise and fall since slashing its prices to $9.95. Its subscriber rolls quickly swelled, with the company reporting that it has some 3 million customers — a hefty increase from the number of users it boasted when Helios purchased it.

“With only eight employees at the time, MoviePass was considered a fringe player supporting 720 partnered screens and having 15,000 subscribers,” the press release reads. “When MoviePass lowered its subscription price from $20 per month to $9.95 per month, it created a movement bringing movie enthusiasts back to movie theaters and became a boon to a declining industry which, one year later, is showing signs of a financial rebound.”

In order to stop burning through cash, MoviePass has instituted major changes. After publicly flirting with raising prices, it is abandoning that plan, but will limit subscribers to three films a month. It previously allowed them to buy a ticket a day. MoviePass has been plagued by service outages as it has struggled to pay its bills.

“We far exceeded our 2017 expectation for Helios and MoviePass,” said Ted Farnsworth, Helios chairman and CEO. “In our agreement to acquire MoviePass in August 2017, MoviePass had a performance milestone to achieve 100,000 subscribers in one year. We were all surprised to see the subscriber growth surpass that milestone in one week. It is rare to see surprises of this magnitude. We’ve reached an important point in our company where, after a year of research and analysis, we believe we have fine-tuned the MoviePass business model to fit our unique growth rate. Under the new plan, we believe we are creating a more sustainable path for MoviePass and its loyal subscribers.”

Since it started its financial free-fall, MoviePass has been the subject of a great deal of media attention, much of it of the critical or doomsday variety. In its progress report, MoviePass decided to accentuate the positive.

“MoviePass is one of the most widely read business stories of 2018,” it said.

More Film

  • They Shall Not Grow Old restoration

    Peter Jackson Documentary 'They Shall Not Grow Old' Nabs Limited China Release

    The Peter Jackson produced and directed World War I documentary “They Shall Not Grow Old” will hit Chinese theaters on November 11. Though it will roll out nationwide, it will do so via the China’s National Arthouse Alliance, which has limited screens. The 2018 documentary puts together interviews with WWI veterans and more than 100-year-old [...]

  • Zombieland Double Tap

    'Zombieland: Double Tap' Hopes to Recapture Raunchy Zombie Magic, 10 Years Later

    Audiences may have a few questions about the sequel to 2009’s hit “Zombieland,” which opens Friday. Why did it take 10 years to make a second one, after the first grossed $102.4 million worldwide on a $23 million budget, making it the third-biggest zombie movie of all time (second-biggest if you don’t count “Hotel Transylvania,” [...]

  • AMC TheatresShop signs, Los Angeles, America

    AMC Theatres Accused of Firing VP Who Complained of Gender Pay Gap

    A former vice president at AMC Theatres filed a federal lawsuit on Wednesday, accusing the company of firing her after she complained that she was paid far less than her male peers. Tonya Mangels, who was vice president of product marketing, said that in March 2018 her supervisor inadvertently sent her a spreadsheet that included [...]

  • Sir Elton John poses for photographers

    Elton John Calls 'Lion King' Remake a 'Huge Disappointment'

    Elton John isn’t feeling the love for Disney’s latest live-action remake. In an interview with GQ U.K., the legendary musician criticized Disney’s remake of “The Lion King,” citing the film’s music as a “huge disappointment.” “The new version of The Lion King was a huge disappointment to me, because I believe they messed the music [...]

  • Fiddlin'

    Film Review: 'Fiddlin''

    Not many forms of music have “old-” actually built into their name as a prefix. So it’s a given that the practitioners of the 200-year-old genre known as “old-time music” will wear their antiquity proudly in “Fiddlin’,” a documentary set in and around the 80th annual Old Fiddler’s Convention in Galax, Va. What may not [...]

  • Jonah Hill attends the press conference

    Jonah Hill Passes on Role in 'The Batman'

    After being offered a role in “The Batman,” Jonah Hill has moved on from the project. Why exactly Hill is passing is currently unknown, and insiders tell Variety that when the news was initially reported, it was very early in the negotiations and that a deal was far from closing. The news comes after Zoe [...]

  • Daniel Kaluuya Elizabeth Moss

    SCAD Savannah Film Festival Honorees Include Daniel Kaluuya, Elisabeth Moss

    Daniel Kaluuya, Elisabeth Moss, Danielle Macdonald, Aldis Hodge, Valerie Pachner, Samantha Morton, Sienna Miller, Alan Silvestri and Olivia Wilde are set to be honored at the 22nd Annual SCAD Savannah Film Festival. Breakout Award honorees include Beanie Feldstein, Kaitlyn Dever, Jharrel Jerome, Mena Massoud and Camila Morrone. Macdonald, who appears on Netflix in “Unbelievable” and [...]

More From Our Brands

Access exclusive content