SALT LAKE CITY – Movie Subscription Service Sinemia – a top competitor to MoviePass – halted its activities in the United States on Thursday night.
Company officials wrote in a statement on the Sinemia website. "However, we saw no sign of sustainability as an independent subscription service for movie tickets as cinemas are building their own subscriptions."
The report also said the company could not cover the costs "Unexpected lawsuit" and at the same time in operation.
The shutdown is nearing the opening of "Avengers: Endgame" on Friday, which is sure to be one of the biggest movies of the year.
The service started and offered several types of plans that allowed users to run a series of movie tickets each month for a fee. According to Business Insider, the company operates in other countries, including Canada, Australia and the United Kingdom.
Like MoviePass, Sinemia was no stranger.
A class action lawsuit claiming the company was baited, and According to Indiewire, the system was changed to a user switch last November. The lawsuit alleged that the company lured customers with a discounted movie ticket promise, but then added charges so there was no rebate, Indiewire said.
Earlier, MoviePass had problems last year. On at least one occasion, the company had no money to buy movie tickets for its customers. At the peak of the company, there were 3 million users, but according to Business Insider, there were only 225,000 users by this month.
Although Sinemia and MoviePass may no longer be suitable for movie enthusiasts, some theatrical companies, including AMC and Cinemark, continue to offer similar subscription services.
It is unclear whether subscribers in other countries where Sinemia is currently operating will be affected by Thursday news. The company's statement does not mention possible refunds for users.
"We would like to sincerely thank our customers who believed in us and helped us on this path for their love and support," the statement says. "We are so thankful that we had the opportunity to share our dream with you." Related stories