MoviePass is shutting down for good

For a fleeting moment in time Movie Pass subscribers could see a movie a day for just $9.95 a month

For a fleeting moment in time Movie Pass subscribers could see a movie a day for just $9.95 a month

Led by penny stock investor Ted Farnsworth and former Netflix executive Mitch Lowe, MoviePass was unable to keep up with the demand it created with its $10-a-month plan or profitably offer a service that effectively subsidized moviegoing.

MoviePass subscribers were notified by Helios that the struggling service was being shut down because "efforts to recapitalize MoviePass have not been successful to date".

MoviePass seemed like it was too good to be true and, it turns out, it was.

At one point, MoviePass was on top of the world. After that, the service grew rapidly to 3 million subscribers in less than a year.

It was a wild time for movie lovers and even casual movie-likers, but, it turned out the business model of charging customers $10 a month and then paying full price for their tickets didn't pencil out. As a result, they did away with the unlimited plan and changed prices - something that didn't go over so well.

Just before the July 4 holiday, MoviePass said it was suspending service for several weeks to fix technical issues and finish work on a new version of its app. Subscribers will not need to request a refund or contact MoviePass™ customer service to receive a refund.

Helios and Matheson Analytics, MoviePass' parent company, said it formed a strategic review committee that will identify, review and explore all strategic and financial alternatives for MoviePass.

In August it claimed to have restored service to 'a substantial number of our current subscribers'. Once upon a time, MoviePass offered film aficionados the ability to pay $10 a month and see nearly any film as often as they'd like. Nevertheless, MoviePass™ remained committed to leading and competing in an industry that is resistant to outside competition and change.

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