Why There's Reason to Worry About MoviePass

With stock for Moviepass parent company Helios and Matheson Analytics bottoming out on Wall Street, it’s fair to question the future of this disruptive movie-ticketing service. While the company is well on its way to hitting its own projection of 5 million U.S. subscribers by the end of the year, the low prices Moviepass offers consumers to build its audience that quickly partly explains why there’s so much skepticism about its fiscal fitness.

The failure of Moviepass to secure discount rates from the biggest exhibitors in the nation makes for an untenable business model, and there’s little indication the relationship with giants like AMC and Regal will improve anytime soon. Moviepass was smart to diversify its business into the distribution of films like the upcoming “American Animals,” but if the company isn’t careful, it could end up bankrupt by the time it even hits theaters.

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