What was a blessing to fans – the chance of seeing a big Hollywood hit in the cinemas for $ 10 a month every day – has become a struggle for survival in a company that hopes to shake moviegoers]. MoviePass only With little cash available, its subscribers have been subjected to ever-changing rules to curb demand and preserve the company's dwindling resources.
MoviePass, owned by Helios & Matheson Analytics Inc., estimates it could offer fans less than $ 10 a month in daily movie admissions. As the company paid the full price for tickets, the cash outflow was immediate and inexorable. Hoped-for deals with big studios and the biggest cinemas sharing the costs were never reached.
Chief Executive Officer Mitch Lowe held an all-hands meeting with staff on Monday, suggesting that subscribers can no longer use their passports For some upcoming major releases, Business Insider reported on Monday
Neither MoviePass nor Helios & Matheson responded to phone and email requests for comments after normal business hours on Monday.
To curb the outflow of money, MoviePass has imposed up-front pricing. Some movie fans post photos of themselves in almost empty cinemas after paying the levy. Even at noon, on weekdays, screenings of pictures that were in the cinema for weeks are being inflicted with price increases of up to six dollars. Last week, older films such as "Skyscraper" were chargeable at peak times.
In response to a customer request via its Twitter feed, MoviePass said the surcharge "is holistically calculated by the demand of the movie, some theaters may be more full than others."
By the AMC, the country's largest movie chain, there were no movies in the app at least one day of the day. The theater has taken no action to block the service, said one person who knew about the matter and did not want to be identified because of the sensitivity of the situation. Cinemark and Regal cinemas in New York and Los Angeles also did not seem to be available.
Meanwhile, MoviePass competitors ̵
Last week, New York-based Helios & Matheson reversed a 1-for-250 stock split to retain its Nasdaq listing. The company said on Friday that it secured $ 6 million in credit from Hudson Bay Capital Management to keep its service up and running. The stock fell 1.20 to 80 cents on Monday, again threatening the company's listing.
Lowe and lead investor Ted Farnsworth said they expect the MoviePass to become profitable with 5 million subscribers. At the last count, the service had reached 3 million.
The question for subscribers is how long MoviePass can go on – and if they can even watch movies. Some customers bought $ 90 annual subscriptions.