MoviePass may be out of luck. Well, if Elon Musk claims he can not save the movie ticketing app, who could? Susan Victoria Perez from Buzz60 has more.
Another shoe has just landed at the supervised cinema button MoviePass
Carl Schramm, a member of the Board of Directors for the parent company of MoviePass, Helios and Matheson Analytics, has resigned to cite management concerns.
It's the latest installment of the once-trendy movie ticket subscription, which redesigned its subscription model recently to offset its cash usage. The ticketing service grew to more than 3 million subscribers as members watched a movie every day for a monthly fee of $ 9.95. But two weeks ago it reduced that to three films a month.
"We believe that this new business model will immediately reduce our burning so we can realign our efforts where they belong, an amazing theatrical experience and building a business that will continue to benefit our nationwide community," said Ted Farnsworth , Chairman and CEO of Helios and Matheson Analytics.
More: MoviePass restricts the number of customers to three films per month, with prices remaining the same
More: When MoviePass goes back, which film ticket is your best choice?  In a letter to Farnsworth dated August 25, Schramm cites concerns about the corporate strategy of Helios and Matheson Analytics.
"I object to the manner in which the Board of Directors has submitted a series of business decisions to management without the Board having ample time to review complex documents, review or discuss key transactions such as the Schramm says in a letter filed with the Securities and Exchange Commission
his concerns have escalated in the last two months, says Schramm, "as management appears to have a number of important ones Made business decisions and conducted significant transactions either without board knowledge or approval or in board meetings with just hours by email from the advance notice. "
At least one meeting ended before he knew she had been called, Schramm says in the letter. "Just last week, I learned that management has withheld important information from the board for months," he said.
Earlier this month, MoviePass decided not to raise its price to $ 14.95 as planned, but reduced the number of films subscribers can see that the revised plan focuses on the majority of subscribers, the three films or less monthly.
Last month, the company applied for a $ 5 million emergency loan, which it has since repaid when it ran out of money. The MoviePass app had technical issues this weekend, and the company made an apology for Twitter.
The concerns and changes in the subscription plan, which is accepted by more than 90 percent of cinemas, has allowed competitors to open up. Two months ago, AMC launched its own Stubs A-List $ 19.95 monthly service, which allows moviegoers up to three movies a week, including special theatrical performances such as 3D and IMAX screenings – a perk MoviePass does not allow.
Another competitor, Sinemia has a number of movie ticketing subscription plans starting at $ 3.99 monthly, including two $ 9.99 monthly plans – including one for three monthly movies with no blackout dates and another for two monthly movies IMAX and 3D shows. His membership plans range from $ 3.99 a month (for a 2D movie a month) to $ 14.99 for three movies a month. There are also family plans starting at $ 7.99 for two tickets to a movie every month.
Sinemia's $ 7.99 monthly subscription for two films in each theater was rated in a survey by the National Research Group this week with 41 percent of 1,558 moviegoers saying they were "very likely" to subscribe to such a plan.
MoviePass has lost some clout in brand perception, says NRG. The satisfaction with the MoviePass has dropped in the last five months, the research group said, and 50 percent of those who canceled the service did so in the past month. Only 37 percent of current MoviePass subscribers said they planned to "stay with this service for a long time," a 62 percent decline in March.
Some subscribers give MoviePass the benefit of the doubt. Justin Kangas, from Waldoboro, Maine, said he was not upset about the new monthly limit. He sees three movies or less per month, which is typical for 85 percent of its members, according to MoviePass. However, he is disappointed with the company's "inability to communicate, provide adequate customer service and rapid change."
"Hopefully they'll find out because at the end of the day, we need a more affordable way for your average consumer to watch movies in the theater when theater survives," said Kangas, a school principal who has been a subscriber for a year.
Despite MoviePass's recent problems, consumers have a "healthy appetite for movie ticket subscription services," NRG said in the survey, with 39 percent of moviegoers "definitely showing interest in a buoyant subscription-based plan."
Helios and shares of Matheson Analytics (HMNY) dropped from a stock price of more than $ 2 in January to two cents on Thursday, despite a stock split last month. In June, NASDAQ informed the company that its shares could be delisted from the stock market if they did not return to $ 1 per share or more by December 18.
$ 104 million loss in April-June, mainly due to operating expenses of MoviePass, leading HMNY to report a net loss of $ 83.7 million for the quarter ended June 30, 2018.
For all its problems, MoviePass has launched a contest to celebrate the first anniversary of lowering its monthly fee to $ 9.95. Prizes in the "Ultimate MoviePass Getaway" competition, which runs through Friday, include a Los Angeles trip for two, annual MoviePass passes, and another $ 4,000 worth of swag.
Contribution: Kelly Tyko, The (Stuart, Fla.) News. Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider .
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