×
You will be redirected back to your article in seconds

MoviePass Has Lost Over 90% of Its Subscribers in Less Than a Year (Report)

MoviePass users apparently hit the exits en masse after it scaled back the number of movies users could see each month: The flailing cinema-subscription provider has seen its subscriber rolls plunge from a peak of more than 3 million to just 225,000 in under a year, according to a new report.

The numbers were reported by Business Insider, which cited “internal data” it had obtained. Asked for comment, a MoviePass spokeswoman declined to confirm the subscriber figure.

In June 2018, MoviePass claimed it had signed up more than 3 million subscribers for its $9.95 monthly plan, which let customers see one movie every single day. But that proved unsustainable, and MoviePass was forced to change that to a three-movies-per-month plan. In August 2018, MoviePass Inc. began to convert subscribers on annual subscription plans to the three-movies-per-month subscription plan, by giving annual subscribers the option to either cancel or refund their annual subscription or continue on the new three-movies-per-month subscription plan.

Evidently, over 90% of MoviePass’ previous subscribers didn’t care to continue paying for the service given the dramatically scaled-backed terms.

Popular on Variety

Last month, MoviePass introduced a refashioned “unlimited” plan, dubbed Uncapped, priced at $14.95 per month (or $119.4 per year), to again allow customers to see one movie daily. But it comes with big caveats, described by MoviePass like this: “Your movie choices may be restricted due to excessive individual usage which negatively impacts system-wide capacity.” According to the BI report, MoviePass has signed up only about 13,000 new subscribers Uncapped launched in mid-March.

As of March 21, 2019, Helios & Matheson Analytics (MoviePass’ parent company) said it had cash on hand of about $2.8 million and approximately $13.1 million on deposit with its merchant and fulfillment processors related to subscription revenues.

Last month, Helios and Matheson said it raised a $6 million new round of financing from “certain institutional investors,” which closed March 25. The company said it would use the $5.56 million net proceeds (after placement-agent fees) “to accelerate MoviePass’ product development, fine tune its subscription technology, and increase MoviePass Films’ investment in new films.”

Helios & Matheson last filed financial results for the September 2018 quarter. Last month, it restated results for the first nine months of 2018 — saying it had a net loss of $256.4 million (versus $246.9 million previously) and an operating loss of $327.4 million (versus $320 million before). The company’s revenue for the first three quarters of 2018 was restated as $198.3 million (compared with $204.9 million).

HMNY said those misstatements were the result of “the erroneous recognition of up to approximately $5.9 million of revenue from certain MoviePass subscriptions that were in a suspended state due to changes made to the MoviePass subscription service that had not yet been consented to by the applicable subscribers.” The company also included $700,000 in revenue from the sale of subscriptions by Costco, but those subscriptions were refunded and MoviePass didn’t factor that into its earnings.

Last fall, the New York Attorney General opened a securities-fraud probe into whether Helios and Matheson misled investors. Among other legal woes, MoviePass also is the target of a class-action lawsuit by subscribers claiming the change in the “unlimited” plan was a deceptive “bait-and-switch” tactic.

Separately, MoviePass is suing rival Sinemia, alleging patent infringement. A judge earlier this month allowed MoviePass’ lawsuit to proceed.

More Film

  • My Zoe

    'My Zoe': Film Review

    There are two films in Julie Delpy’s ambitious, sharply-made but unbalanced “My Zoe.” There’s the scabrous relationship melodrama, about bitter exes sharing custody of a beloved child, which contains the story’s most potent emotions. And there’s the sci-fi-inflected ethical-dilemma grief movie, which houses its most provocative ideas. Both have much to recommend them, not least [...]

  • Richard Jewell

    The Big Lie of 'Richard Jewell' (Column)

    For a man who was so enraged at the administration of Barack Obama that he spent his 2012 Republican Convention speech lecturing an empty chair, Clint Eastwood has made a number of conventional, level-headed — one might even say liberal — political dramas. Films like “Invictus” and “J. Edgar” and “Midnight in the Garden of [...]

  • Oscar Isaac Star Wars The Rise

    Oscar Isaac Has Never Felt Like a 'Star Wars' Insider

    Unlike his “Star Wars: The Rise of Skywalker” co-stars Daisy Ridley and John Boyega, Oscar Isaac had already established a long and acclaimed acting career before J.J. Abrams cast him as ace X-wing pilot Poe Dameron in 2015’s “Star Wars: The Force Awakens,” including standout roles in 2006’s “The Nativity Story” and 2011’s “Drive,” and [...]

  • Les Arcs to Showcase New Projects

    Les Arcs to Showcase New Projects by Jonas Alexander Arnby, Agnieszka Smoczyńska

    Denmark’s Jonas Alexander Arnby, France’s Alain Gagnol and Jean-Loup Felicioli, and Poland’s Agnieszka Smoczyńska are among up-and-coming directors from across Europe whose latest projects will be presented at the 11th Coproduction Village of Les Arcs Film Festival. This edition of Les Arcs Coproduction Village will showcase a total of 22 European projects spanning 19 countries. [...]

  • Chez Jolie Coiffure

    'Chez Jolie Coiffure': Film Review

    Shortly before the credits roll on “Chez Jolie Coiffure,” a customer in the eponymous hair salon asks her stylist, Sabine, if she has any plans to go home this year. Out of context, this sounds like the kind of standard, empty small talk one often makes while having one’s hair cut: what good movies you’ve [...]

More From Our Brands

Access exclusive content