• MoviePass, which tried to reinvent the economics of going to the movies - allowing moviegoers to see multiple movies in a month for s flat fee - is no longer.
The company filed for Chapter 7 bankruptcy protection, which will dissolve the entity and use the assets to pay off creditors. Helios and Matheson Analytics, which owns the business, "listed its total assets at $396.5 million and total debts $276.8 million in its bankruptcy filing," according to Variety.
The story says that "ultimately, MoviePass’ cash-burning business model proved unsustainable … Originally MoviePass launched with a one-movie-per-day plan for $30-$40 per month then cut that to the too-good-to-be-true $9.95 monthly for a daily movie. Then in August 2018, MoviePass switched that to just three movies each month for $9.95, prompting a wave of cancellations. Last year, it rolled out a refashioned 'unlimited' option, for $14.95 per month, to again allow customers to see one movie daily but warning that movie choices would be restricted based on system-wide capacity'."
