MoviePass has over 3 million subscribers, yet it shut down on July 26 due to the lack of funds to supply customers. Because of the shutdown, MoviePass borrowed an estimated $5 million to pay merchant and fulfillment processors. The MoviePass administration changed their policy as a result: if the movie was popular or the theater was busy at the showtime customers went to, they would then have to pay an additional fee beyond the inherent subscription fee.
This led to frustrated customers like Michelle Denny, a former MoviePass subscriber, who cancelled due to the new policy. AMC announced their own monthly subscription service on June 26, pricing it at $19.95 a month.
MoviePass, now facing serious competition, issued a statement on the matter via Twitter: “Twice the price for 1/4 the theater network and 60% fewer movies. Thanks for making us look good AMC!”
MoviePass CEO Mitch Lowe claimed that the company will have five million subscribers by 2019. Lowe stated that MoviePass is doing fine, but their stock says otherwise: there was a recent request from company administration to have investors approve a 1-for-500 reverse stock split. The change in tactics came about after their stock fell below two cents a share.
The company has had five changes to the monthly subscription service in the past five months resulting in their stock falling every time. MoviePass offers customers three movies a month for $9.95 as of August 18. As more movie subscription services get implemented, the numbers are showing that MoviePass is becoming less profitable.
The Puyallup Post is the award-winning news media of Pierce College Puyallup in Puyallup, Washington. Copyright The Puyallup Post 2018. Find us on Facebook, Twitter, Instagram and Youtube @thepuyalluppost