×
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

  • Cannes Placeholder Red Carpet

    Cannes: KKR and Atwater to Launch Library Pictures, Boost Local-Language Film

    Local-language film making is to get a fillip through the launch of Library Pictures international. The company is backed by a consortium of investors led by media investment firm Atwater Capital and a newly formed Germany-based media company established by KKR. The new firm is intended as a content financing entity to support industry-leading filmmakers [...]

  • After21_0020.ARW

    Sequel to Independent Movie Hit 'After' Launches in Cannes

    “After,” the highest grossing independent film of the year so far, is set to return with a sequel, with stars Josephine Langford and Hero Fiennes Tiffin reprising their roles. Voltage Pictures is selling the new pic in Cannes. The first film, which had a reported production budget of $14 million, grossed more than $50 million [...]

  • Liam Gallagher and Son shopping at

    Cannes: Screen Media Buys 'Liam Gallagher: As It Was' (EXCLUSIVE)

    Screen Media has acquired North American rights to Charlie Lightening and Gavin Fitzgerald’s feature documentary “Liam Gallagher: As It Was.” The film follows the former Oasis frontman as he finds himself on the periphery of the rock ‘n’ roll world after years spent at the white hot center of the music world. Screen Media will [...]

  • La Casa de Papel Netflix

    Madrid Region Booms as an International Production Hub

    Madrid is booming as never before in its 125-year film history; arguably, no other European site is currently transforming so quickly into a global production hub. A 20-minute drive north of the Spanish capital, a large white-concrete hanger has been built beside the Madrid-Burgos motorway, at the entrance to Tres Cantos, a well-heeled satellite village and industrial [...]

  • Emirati Comedy

    Cannes: Stuart Ford's AGC Takes World Sales on Emirati Comedy 'Rashid and Rajab'

    Stuart Ford’s AGC International sales arm has taken global distribution rights outside the Middle East to Dubai-set concept comedy “Rashid and Rajab” which will be hitting movie theaters in the region starting in June. The deal between the film’s production company Image Nation Abu Dhabi and AGC, which have a close rapport, was signed in [...]

More From Our Brands

Access exclusive content