×
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.

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 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

  • Editorial use only. No book cover

    'Alien' at 40: Ridley Scott Explains Why 'You Don't Show the Monster Too Many Times'

    It’s difficult to imagine Ridley Scott’s sci-fi/horror classic “Alien” without the clear-minded, strong presence of Tom Skerritt as Dallas, the captain of the ill-fated Nostromo. But originally, the actor turned down “Alien,” which celebrates its 40th anniversary on May 25, though he thought Dan O’Bannon’s script read well. “There was nobody involved at the time [...]

  • The Poison Rose

    Film Review: 'The Poison Rose'

    It is 1978 in the City of Angels and the hard-drinking washed-up sleuth Carson Phillips is having another boozy day through its atmospheric streets. There is a hint of innate coolness and self-deprecation in his elongated voiceover intro — you might even briefly mistake Carson, played by a one-note John Travolta, for a Philip Marlowe [...]

  • 'Chambre 212' Review: A Comedy More

    Cannes Film Review: 'Chambre 212'

    Most of us, in our romantic lives, meditate here and there on the other roads we might have traveled, and movies are uniquely equipped to channel those alternate-universe-of-love possibilities. That’s the idea at the (broken) heart of “Casablanca.” And the fantasy of getting to see the turns your life didn’t take play out right in [...]

  • Zach Galifianakis Jerry Seinfeld Netflix

    Film News Roundup: Zach Galifianakis' 'Between Two Ferns: The Movie' Coming to Netflix

    In today’s film news roundup, “Between Two Ferns: The Movie” is unveiled, “Friedkin Uncut” gets a fall release and Sony Classics buys “The Traitor” at Cannes. MOVIE RELEASES Netflix has set a Sept. 20 release date for Zach Galifianakis’ “Between Two Ferns: The Movie,” based on his 11-year-old talk show. Related AMC Stubs A-List Becomes [...]

  • Romanian Crime-Thriller 'The Whistlers' Bought for

    Romanian Crime-Thriller 'The Whistlers' Bought for North America

    Magnolia Pictures has bought North American rights to the Romanian crime thriller “The Whistlers” following its premiere in competition at the Cannes Film Festival. Written and directed by Corneliu Porumboiu, the film stars Vlad Ivanov, Catrinel Marlon, Rodica Lazar, Antonio Buil, Agustí Villaronga, Sabin Tambrea, Julieta Szonyi and George Pisterneanu. Magnolia is eyeing a theatrical [...]

More From Our Brands

Access exclusive content