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MoviePass failed so cinema can live
In the blink of an eye, MoviePass went from being one of the hottest startups to a textbook example of how not to run a company. Its $9.95-a-month plan, which let you see one movie per day, launched last year, followed by explosive growth. But MoviePass was unsustainable from the get-go, and its success led directly to a slew of recent issues: surge pricing for popular showtimes (which often seemed randomly assigned); an outage after the company literally ran out of money; and excluding some of the most anticipated titles of the year, like Mission Impossible: Fallout. Now, instead of raising its subscription price, MoviePass is limiting customers to three movies a month.
MoviePass slashes plan to three movies per month
After borrowing emergency funds to keep the lights on and toying with a price increase, MoviePass is trying to stave off the Grim Reaper by limiting how many movies you can see each month. You won't be able to see a movie every day with your plan after August 15th. Instead, you can only grab tickets for three flicks a month, and get up to $5 off tickets beyond that. MoviePass CEO Mitch Lowe told the Wall Street Journal that the move will slash the company's cash burn rate by over 60 percent.
MoviePass is raising the price of its standard plan
MoviePass' money woes seem to have caught up with the company in a big way lately. Last week, the company ran out of money, causing service outages that forced the company to borrow an emergency $5 million. Service issues continued through the weekend and now the company has announced some new measures aimed at keeping its business afloat -- the main one being a price increase.
MoviePass stops offering tickets for big movies amid outages
MoviePass' financial and technical problems keep getting worse. According to a Business Insider source, company chief Mitch Lowe not only told staffers that the service wouldn't offer tickets for the next two major movie releases this summer (Christopher Robin and The Meg), but hinted that this would be the policy for other movies in the near future. Some viewers couldn't order tickets for Mission: Impossible - Fallout this past weekend, for that matter. A spokesperson wouldn't directly comment on the report, but did point to an open letter from Lowe that said "certain movies may not always be available in every theater."
After Math: The price of doing business
Elon Musk just can't seem to stay out of the news. After last week's tirade against the Thai cave rescue diver, his girlfriend took to Twitter to defend his large donations to the GOP as "the price of doing business in america [sic]." But that price differs depending on who you ask. For right-wing troll Alex Jones, that price is a 30-day timeout from Facebook and Yahoo, but for MoviePass that price could well be the company's entire operation.
MoviePass money woes caused a service outage last night
MoviePass customers experienced a service outage last night and it turns out it's because the company ran out of money. Business Insider reports that MoviePass' parent company, Helios and Matheson Analytics, wasn't able to make necessary payments due to a lack of funds, so it borrowed $5 million. "The $5.0 million cash proceeds received from the Demand Note will be used by the Company to pay the Company's merchant and fulfillment processors," Helios and Matheson Analytics said in an SEC filing. "If the Company is unable to make required payments to its merchant and fulfillment processors, the merchant and fulfillment processors may cease processing payments for MoviePass, Inc. ('MoviePass'), which would cause a MoviePass service interruption. Such a service interruption occurred on July 26, 2018."
MoviePass was down and out on a summer Friday night
For the past couple of hours MoviePass was experiencing an outage on a Friday night in the summer. It also happens to be the hottest day so far this year in many parts of the country and would otherwise be a perfect time to hit air-conditioned theaters. That's not a good look for a service that just introduced "surge" prices for popular films days after filing with the SEC to sell off up to $1.2 billion in equity and debt securities to raise funds. MoviePass' Twitter account is recommending people wait before going to the theater, but if you absolutely have to go and can't log in, then buy a ticket and the company will reimburse you. Seriously.
MoviePass’ surge pricing starts today
Last month, MoviePass CEO Mitch Lowe announced that surge pricing would soon go into effect, charging customers a little extra for movies and showtimes that are especially popular. That added fee, which MoviePass is calling Peak Pricing, starts rolling out today to customers with a monthly plan as well as any new annual subscribers. When a film or a particular showtime is in high demand and subject to an additional fee, you'll see a little red lightning icon over the showtime. Any showtimes that are gaining in popularity and could have an added Peak Pricing fee soon will have a grey lightning icon above them.
Everything MoviePass does just makes things worse
I purchased a MoviePass membership back during a promotion. I paid $90 for a year of one movie a day, and got a MasterCard in the mail that I could use to purchase a ticket at the box office after checking in using the MoviePass app. The first month, I went to about 10 movies. The hassle of using a sometimes-buggy app and heading up to the counter one moviegoer at a time was worth the promise of free movies.
MoviePass tries a financial Hail Mary to keep itself afloat
There's no doubt about it: MoviePass is bleeding cash, and there's no guarantee that a growing subscriber base or investors (who are increasingly jittery) will keep it going. And that, in turn, is leading it to consider more drastic measures. MoviePass parent company Helios and Matheson Analytics (HMNY for short) has filed a statement with the SEC to let it sell as much as $1.2 billion in equity and debt securities over the next three years. This doesn't guarantee that it will raise $1.2 billion, as TechCrunch mentioned -- rather, it would provide a new avenue for raising cash if it doesn't think other options are enough.
Alamo Drafthouse will test its own version of MoviePass
Boutique theater chain Alamo Drafthouse is getting in on the movie subscription craze, too. Dubbed the "Alamo Season Pass," its version sounds incredibly convenient compared to the competition. Simply use the Drafthouse mobile app to make your purchase, and once you arrive at the theater it'll unlock your tickets -- no need to wait in line to scan your barcode at the box office. Your server will check your ticket once you're seated, when they take your food or drink order. You can purchase extra tickets for your party when you make your seat reservation.
Sinemia adds family plans in its latest bid to battle MoviePass
Not to be left out, Sinemia has an announcement this week too: The movie-ticket subscription service is introducing family plans to its offerings. Pricing for its "For Two" tier have changed slightly, and if you want to add another person to the mix, it jumps accordingly. A three-person plan for one standard ticket (each) per month will set you back $/£14.99, while two tickets (each) per month will cost $/£24.99. Bumping up to include 3D films and one IMAX engagement boosts the price to $29.99 per month. Want three tickets (each) per month with 3D films and one IMAX showing? That'll be $/£44.99 each month.
MoviePass will begin surge pricing next month
Business Insider reports today that MoviePass will start charging surge prices for certain movies during particular times. When the app deems a showing to be exceptionally popular, MoviePass will charge its subscribers an additional $2, according to CEO Mitch Lowe. "At certain times for certain films -- on opening weekend -- there could be an additional charge for films," he told Business Insider. The new pricing is set to take effect in July, but Lowe says subscribers to the annual plan will be exempt.
AMC's 'Stubs A-List' subscription is a direct attack on MoviePass
That took.... longer than expected: To compete with MoviePass, AMC Theaters will launch a monthly subscription service starting June 26th. With the AMC Stubs A-List program, in exchange for $19.95 per month folks will be able to see three movies of their choosing per week -- even if that means seeing the same movie three times in the same day. According to a press release, this also includes IMAX, Dolby Cinema and 3D features. You can buy tickets day-of or weeks in advance, too, using either the AMC website or mobile app.
MoviePass parent company gets into the film production business
Helios and Matheson Analytics, the parent company of movie ticket subscription service MoviePass, is trying to vertically integrate its business with a new acquisition. It has an "exclusive option" to acquire the library and production slate of Emmett Furla Oasis Films (EFO Films), and the two are launching a new nameplate called MoviePass Films. Despite MoviePass' precarious financial situation (it loses money once subscribers pick up a single ticket in cities like New York and LA) it has expressed interest in making movies to own both sides of the pipeline, with a belief that its service will help pump up marketing.
Sinemia lets you book movie tickets the minute you sign up
The prediction of MoviePass's demise have been coming in from all corners, but competitor Sinemia is just adding features to make it more attractive. Today, the company announced that it is introducing Sinemia Cardless, which allows subscribers in the US, UK, Canada and Australia to reserve movie tickets without a physical membership card. This feature will mainly be aimed at those who have signed up for the service but haven't yet received a card in the mail; they won't have to wait in order to use their membership benefits.
Sinemia takes on MoviePass with subscription plans for two
Sinemia has an idea as to how to beat MoviePass at its own game: offer subscriptions that model the way you usually go to the movies, with other people. It's now offering a range of "Sinemia for Two" subscriptions that, as the name implies, let you bring a partner or friend to the theater. The basic $10 monthly plan (£10 in the UK) offers one movie for two, but you can step up to two movies for $14 (£14), add 3D or IMAX to the mix for $20 (£20) and jump to a third movie for $30 (£30). And yes, you can pick the seats to be sure you stay together.
MoviePass competitor Sinemia offers movie plans starting at $5/month
Today, Sinemia, a MoviePass competitor, announced its lowest pricing to date. For just $4.99 (on an annual plan), moviegoers in the US, UK, Canada and Australia can get one ticket per month to any 2D, traditional movie. For $6.99, you can get two tickets per month. If you'd like to see additional movies (or add 3D and IMAX into the mix), the prices for that are $9.99 for two tickets and $14.99 for three tickets per month.
MoviePass brings back its movie-per-day plan
Last month, MoviePass began offering a $30, three-month plan that came with an iHeartRadio premium subscription trial but limited users to just four movies per month. And when asked if the popular movie-per-day plan would be returning, MoviePass CEO Mitch Lowe told The Hollywood Reporter last week that he didn't know. But the movie-per-day plan is back and Lowe says he just didn't want people to ignore the iHeartRadio promotion. "It's marketing 101," he told Variety. "We wanted to focus everybody on this partnership promotion. If people knew the [movie-a-day] plan was coming back, they might not be interested in the iHeartRadio deal." He added that the company never planned to abandon "the flagship product that everybody loves."
MoviePass no longer lets you see the same movie more than once
MoviePass just instituted a new change to its terms of service and the company will now prevent subscribers from seeing the same movie more than once. iMore spotted the update and reports that the new limitation will apply to all subscribers, new and existing. MoviePass' website says, "We recently updated our Terms of Service to reflect that MoviePass subscribers are only permitted to see a select movie in theaters once with your MoviePass. We hope this will encourage you to see new movies and enjoy something different!"
