Sunday, October 13, 2019

MoviePass subscription service shuts down

Fox News Flash top headlines for Sept. 14

Fox News Flash top headlines for Sept. 14 are here. Check out what's clicking on Foxnews.com

MoviePass, the movie ticket subscription service that allowed subscribers to buy up to three movie tickets per month for a small fee, shut down Saturday.

Its future is unclear.

Helios and Matheson Analytics, the parent company of MoviePass, said Friday in a release that it was interrupting service for all its subscribers because its efforts to seek financing have not been successful.

'HUSTLERS' MOVIE: EVERYTHING WE KNOW INCLUDING THE TRAILER, CAST AND PLOT OF THE STAR-STUDDED FILM

It says it's "unable to predict if or when" MoviePass will continue. The company says it's planning to study all options including the sale of the company in its entirety.

Movie Pass, owned by Helios & Matheson Analytics Inc., shut down on Saturday (Andrew Harrer/Bloomberg via Getty Images)

MoviePass drew in millions of subscribers, initially luring them with a $10 monthly rate. But that proved unsustainable. Because MoviePass typically pays theaters the full cost of tickets — $15 or more in big cities — a single movie can put the service in the red. The company was forced to make changes. Those efforts, however, never stopped the losses.

In a letter posted to subscribers on its website, Mitch Lowe, CEO of MoviePass, wrote," In August 2017, MoviePass began a transformation of the movie going industry by introducing its low monthly price subscription service. Since then, others in the industry have followed our lead."

JK ROWLING HINTS AT 'HARRY POTTER AND THE CURSED CHILD' MOVIE: REPORT

MoviePass said it will be providing subscribers with "appropriate" refunds for their period of service already paid for. 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, according to the website.

Helios acquired a majority stake in the subscription service in 2017.

Fox News

More From: Fox News, Entertainment
Sign Up for Our Newsletter

Get breaking news and thought-provoking commentary
directly mailed to your inbox, faster than AIR MAIL!

Get Informed

Sign up for breaking news and thought-provoking commentary delivered directly to your inbox.