MoviePass, a subscription service where capital owners spend money on movie tickets to try to change the theater business model, closes on September 14. The announcement was made today by emailing subscribers with a separate, in Helios and Matheson parent company. This is the end of a two-year story that saw the famous father go to great lengths to keep his business afloat, despite the fact that it was very clear and costly.
The last thing we heard from MoviePass was the company the availability of many of its employees, including the team responsible for mediating connections to cinemas, shortly afterwards, it is said to have temporarily shut down their services in July. The company has not said when it will start again, but most monthly and yearly subscribers will leave with the app not working and the credit card not working and there is no space for service. return (MoviePass claims that the service has been restored to some users, but it is not clear that it has not been released yet.) Last month, MoviePass was found again has been shown to thousands of customers, credit card numbers in plain online documents, completing the most difficult months of a bad press.
According to Helios and Matheson, MoviePass is far from over. “On September 13, 2019, MoviePass announced to its subscribers that the MoviePass service for its potential subscribers will be closed on September 14, 2019, due to its unsuccessful efforts to update MoviePass until today, “read in the comments.
The company says it will seek funding to return MoviePass, but “it is unclear if the MoviePass service will continue or not.” It also states that “It is not certain that such funding will be available or available in the manner recommended by the committee.” The committee is referred to as the new “strategic review committee”, formed by Helios and Matheson from the board of directors to “identify, review and review strategic strategies and financial strategies” to revitalize the company. It includes the entire sale or purchase of most of its assets, including MoviePass, Moviefone’s movie listing service, and the company’s production arm, MoviePass Slides.
MoviePass, although since 2011, national news was released in August 2017 at a discounted price for its all-in-one movie ticket service. unexpected $ 9.99 per month. The plan was conceived by CEO Mitch Lowe, a former Netflix executive who joined MoviePass in 2016 with bold plans to bring the company’s traditional theater in a more aggressive fashion. . It is fair to say to buyers: to pay a small monthly fee for admission to the dramatic versions. (Limited to one film per day). In most cases, watching a movie every month is enough to cover the cost of the subscription fee in the urban markets. Over the months, MoviePass has signed up to 1 million new subscribers.
For MoviePass, however, the business model is still full of holes. For each ticket received by the user through their free mobile device, MoviePass must pay the full price By sending special credit cards to the subscribers, who collected money from MoviePass bank account . In short, the corresponding MoviePass revenue will be less than the cost of its monthly movie ticket. Even MoviePass nearly $ 70 million has been raised, not enough to prevent bleeding.
Worst of all is MoviePass’s business strategy to bring in extra money that has been despised by the traditional gaming industry. Advisers have seen AMC and other film chains see the company trying to integrate between its customers and the end product, and it failed to deliver on Lowe’s contract, viz. involved in the type of threat application to the market. Yes, MoviePass wanted to grow fast, using capital to fund the rising costs, no choice in movie chains but to play well
MoviePass was able to gain links with smaller movie chains, more owners, and marketing activities from Hollywood production companies to promote new films. But it was not possible to make the most profitable connections with the largest theater companies – AMC, Regal, and Cinemark – to get the much-needed MoviePass award discounts or discounts on tickets. Also, AMC and MoviePass share in the light of public outrage, what is the translation to AMC creates its own subscription product has become very popular. Other chains hei Regal have followed them.
After its first year of popularity, MoviePass started making money. There is no real work in the theater of the company with its own film, the working hand is in trouble, MoviePass began to cut costs. The number of moviegoers that can be viewed each month will be reduced, some of the most popular movie machines will start, the number of cinemas he has worked in the big cities will start to meet other restrictions making it difficult to use its service, hence the low cost.
When subscribers start running, MoviePass can be found wrapped up in endless fashion arguments It has to do with their lack of assistance to the customer, their suspicious reputation for repayment, their concerns and implementation failures, and the variability of their plans, due to the inability to use the service. Helios and Matheson started release significant losses every three months, shareholders will begin to apply for change.
Needless to say, MoviePass was the work of Helios and Matheson who started looking for buyers. But in recent months the brick has slowly pulled its way to its size, no need to call a closing officer. It is unclear if anyone has been able to use MoviePass since the beginning of July, has been dead since then, and for all intents and purposes, for a long time when the service was weak his last episode. The article is on the wall at the beginning of the film chain to offer their own more reliable and affordable subscription services – AMC Form A List costs $ 20 a month and limits to movie subscribers three per week.
At the very least, MoviePass has helped the corporate theater to re-create the image of a new business model for the sale of its services on a monthly basis, and that is what MoviePass”s dream is all about. to you. on AMC A List of other similar options. That was not the end Mitch Lowe wanted, but it was what everyone saw coming.