Struggling movie subscription service MoviePass revealed today that it will completely shut down on Saturday, September 14.
The service gained viral popularity in 2017 when it changed its business model allowing subscribers to watch an unlimited number of movies a month for just $10. After exploring a bunch of different pricing models since, the company hasn’t been able to turn a profit.
MoviePass posted a notice on its homepage today notifying customers of the shut down. The company’s message just refers to it as a “service interruption” but from the press release, it sounds like MoviePass won’t be coming back from the grave.
“The Company is unable to predict if or when the MoviePass™ service will continue. The Company is continuing its efforts to seek financing to fund its operations. There can be no assurance that any such financing will be obtained or available on terms acceptable to the Committee,” reads the statement.
MoviePass’ unlimited movie model proved to be unsustainable. As the company retooled its business model to limit the number of movies subscribers could see per month subscriber numbers started plummeting drastically. Many movie theater chains also ripped off the idea and created their own competing services making it harder for MoviePass to remain competitive.
Helios and Matheson Analytics, MoviePass’ parent company, said it formed a strategic review committee that will identify, review and explore all strategic and financial alternatives for MoviePass. Everything will be considered, including a sale of the company in its entirety or a sale of its substational assets.
Unless someone with big pockets comes in and scoops MoviePass up, it looks like this is the end.
