The End Of An Era
After months of trying to get the business back on track, MoviePass is officially shutting down. In a letter to their remaining subscribers, MoviePass' parent company, Helios and Matheson Analytics Inc. explained that "efforts to recapitalize MoviePass have not been successful to date. The Company is unable to predict if or when the MoviePass service will continue."
The app abruptly closed on Saturday, September 14th, with only one day's notice to subscribers.
A Troubled History
It's safe to say that MoviePass has had a troubled history to say the least. When it started its service, it offered subscribers unlimited movies for a flat rate of $9.95 a month. While the original business plan reasoned that most people don't actually go to 12 movies a year, that soon proved to be a fool's hope.
Subscribers went absolutely hog wild, going to see dozens of films in a year. It was a great product and there was absolutely no way that it was going to survive.
More Realistic Competitors
In his final letter, CEO Mitch Lowe explained that MoviePass "remained committed to leading and competing in an industry that is resistant to outside competition and change."
In a way, MoviePass did just that. Movie theater chains like AMC and Regal have developed their own membership programs at a more sustainable $20 (approximately) a month, as well as other perks. While MoviePass was a failed experiment, it definitely set some major changes in motion within the industry.