MoviePass took another step toward the abyss on Monday, announcing that some of the biggest summer movies will not be available on the service as the company continues to suffer a massive liquidity crisis.
The Company's 3 Million Subscribers Will not Do This In the coming weeks, you can watch the shark thriller "The Meg" and the Winnie the Pooh fantasy "Christopher Robin" – two of the most anticipated films of the summer see their MoviePass card. The news follows a hiccup for many MoviePass users this weekend over the Tom Cruise hit "Mission: Impossible – Fallout".
MoviePass boss Mitch Lowe made the announcement at a company meeting on Monday and extended a letter he wrote to subscribers on Friday
"As we evolve the service, certain movies are not always available in every movie theater on our platform" , he wrote.
On Tuesday, the company went one step further and outlined how these plans would work. Wide releases will be "limited" in the first two weeks of their release, unless they were part of a promotion ̵
Executives said the new steps will reduce the burn rate of MoviePass by 60 percent.
"Through these new steps, the company expects to be able to shorten its timeline to achieve profitability," it said in a statement.
Reducing the number of viewers for customers – and thus the payouts to cinemas – is the key to MoviePass's $ 5 million loan coming due next week. MoviePass parent Helios and Matheson took the loan last week, according to SEC filings, so it could run its app properly. The app failed on Thursday.
The news of reduced footage could potentially be deadly. b low for MoviePass. Cash issues and price declines – Helios and Matheson's share price closed Monday just days after a reverse stock split that artificially inflated its price above $ 10 – were already a deep reason for analysts' concerns. But the decision to make films wastes the only company in the industry: bottomless customer love.
This love disappeared on social media Monday as users complained about the new policy.
In the letter, Lowe also explained the new practice of top price – to charge a fee. Additional charge for hot new releases Subscribers have been pushing what they see as bait-and-switch, but MoviePass declares it preferable to the alternative To raise prices across the board.
Lowe also made another analogy to explain the movements. "This is no different than other home streaming options, which often do not include the latest shows or movies available on other services – for example, you can never find" Game of Thrones "on Netflix."
What Impact a policy of access restrictions – or the disappearance of MoviePass – may have on the box office remains to be seen. Since MoviePass lowered its prices a year ago, economists have debated whether the service spurs people to the movies or simply reduces the cost of movies they would see anyway.
When MoviePass goes down, it will join the short, illustrious list of digital minded companies that capture the imagination of the public, only to be outdone by their own ambition Users on Monday have already paid homage.
"We are working on some very difficult MoviePass emotions, and the scars of Kozmo.com have never been completely healed," wrote expert Mark Lisanti, referring to the unfortunate delivery of the dot-com bubble.
"Removed my MoviePass Card and it became a Circuit City Gift Certificate," wrote commentator Louis Virtel.
The comedian Josh Gondelman may have had the m
eastern reference. "It's better to burn out than fade" – MoviePass, "he wrote.