MoviePass' new funding means it isn't going anywhere just yet

Customers watch less than one movie a month these days.

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Bloomberg via Getty Images
Bloomberg via Getty Images

The general opinion of MoviePass has gradually changed over the past year from seeing it as the salvation for movie-goers to waiting for it to shut down. The financially-troubled service has been through a lot of turbulence lately; once it offered a cinema ticket per day for a monthly fee but then had to retroactively switch to just three movies a month. It turns out, however, that the service will stay around a bit longer—that is, as long as the freshly raised $65 million in funding can sustain it.

It also seems like the company's restrictions on memberships have helped achieve MoviePass' counterintuitive goal: its customers aren't heading to movies that often anymore. Speaking at TheGrill 2018 conference, the CEO of the company's owner Helios & Matheson Ted Farnsworth said that "people are going to less than one movie a month."

Farnsworth ruled out the possibility of bankruptcy and revealed that the company secured the fresh funding in September but didn't disclose the investors and terms of the deal. "We're doing M&A, we're looking at all kinds of acquisitions at any given time and we'll grow the company that way and I think you'll see over the next few weeks," he added.

According to Farnsworth, MoviePass is currently looking for ways to diversify its business model. The possibilities include co-acquisition of indie movies and monetizing the company's subscriber base through targeted marketing efforts.

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