Latest in Entertainment

Image credit:

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

Customers watch less than one movie a month these days.
Andrii Degeler, @adegeler
October 4, 2018
Share
Tweet
Share

Sponsored Links

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.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
Tweet
Share

Popular on Engadget

Live PlayStation 5 photos reveal a truly giant console

Live PlayStation 5 photos reveal a truly giant console

View
Microsoft releases a final preview for Windows 10's October update

Microsoft releases a final preview for Windows 10's October update

View
Verizon's $30 Unlimited Plus tablet plan offers 5G access

Verizon's $30 Unlimited Plus tablet plan offers 5G access

View
Sony apologizes for botched PlayStation 5 pre-orders

Sony apologizes for botched PlayStation 5 pre-orders

View
Canadian police charged a Tesla owner for sleeping while driving

Canadian police charged a Tesla owner for sleeping while driving

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr