Mitch Lowe
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MoviePass' 'day to day' leading exec resigns after a few months
In December MoviePass closed out a turbulent year with new subscription plans for moviegoers and a path to profitability, all with a new exec Khalid Itum taking over day to day operations. Now reports have surfaced that that Itum has resigned, as Business Insider notes that three other managers also left recently, and Variety cites sources claiming Itum had been largely absent in recent weeks. The company confirmed Itum's departure, as well as other execs jumping from full-time to contracted roles. With CEO Mitch Lowe apparently retaking a leadership role, the situation is looking as troubled as ever. Just this week, parent company Helios & Matheson Analytics told investors that " a material weakness relating to subscription management existed" causing it to overstate revenue by several million dollars in the third quarter. That's because it was counting money from subscriptions that were suspended because the customers hadn't opted into MoviePass' new terms. This doesn't seem like a great revelation for a company already under investigation for possible fraud.
Redbox CEO suggests $1.50 rate for Blu-ray rentals
Along with the repeated indications Redbox would expand its Blu-ray rentals this year, there's been hints that it would have to raise prices beyond its standard $1 / night DVD rate. Home Media Magazine reports President Mitch Lowe mentioned during his keynote address at the Entertainment Supply Chain Academy Edge conference that the likely price is $1.50, which seems low enough to keep customers happy and -- judging by the recent slew of deals -- will apparently keep Hollywood studios happy also. to that end, his speech also cited NPD data indicating customers said they wouldn't rent or purchase many of the movies they obtain at the kiosks any other way, while 41% of customers rent before making a decision to buy. Also on deck for Redbox are sales of catalog titles for $5 / $7 / $9 -- so let us know, would you appreciate the option to buy, not just rent, from your nearest vending machine?
