MoviePass may be finally dead for good. The subscription service is shutting down Saturday morning Sept. 14 after failing to revive the company's movie ticket subscription business.
"Our efforts to recapitalize the company have not been successful to date," MoviePass's CEO Mitch Lowe said in a letter to subscribers on Friday.
Although Lowe described the shut down as an "interruption," he added it's unclear whether MoviePass will return. "MoviePass will be providing subscribers with appropriate refunds for their period of service already paid for," his letter adds. "Subscribers will not need to request a refund or contact MoviePass customer service to receive a refund. Subscribers will not be charged during the service interruption."
On Friday, MoviePass's parent, Helios and Matheson Analytics Inc., announced it had formed a committee to "to identify, review and explore all strategic and financial alternatives for the company," including a sale of MoviePass-related assets. The same statement says Helios and Matheson continues to search for financing to fund its operations at a time when the company's stock is close to zero.
MoviePass grabbed headlines back in August 2017 as an all-you-can-watch movie ticketing service that cost only $9.95 a month. The offering represented a steal for consumers, driving MoviePass's subscriber base to more than 3 million customers. However, the business model proved unsustainable, forcing it to cut costs; eventually MoviePass began limiting which movies subscribers could watch and at what times. Reportedly, MoviePass also used shady tactics, such as changing users' passwords, to prevent customers from viewing more movies.
The service tried to rebound this year by introducing higher prices to help keep the business afloat. But clearly, the efforts weren't enough. Despite the shutdown, MoviePass's CEO isn't ruling out another comeback for his beleaguered service. "Although we do not currently know what the future holds for the MoviePass service, we hope to find a path that will enable us to continue the service in the future," he added.