Yes, MoviePass Will Leave A Legacy. Just Not The One They’ll Claim | Forbes

In case you’ve been living in the Marshall Islands for the last 12 months, you’re aware that MoviePass began the movie subscription wars by planting a flag in a $9.99/month, all-you-can-watch moviegoing service, which immediately caused a furor in the film business. MoviePass’ subscription base subsequently balloon to 3 million subscribers. Industry and financial experts were baffled at the business plan put forth by MP’s executives and slowly but surely watched as speed bumps popped up on the MoviePass Highway like a game of Whack-A-Mole.

To stem the horrific losses the company was enduring it subsequently altered its unlimited plan to eliminate certain popular films, most convenient showtimes and, just for good measure, added a surge pricing feature for prime moviegoing times. Reaction to these moves was unsurprisingly stinging from its subscriber base and the media.

Eventually, and that time should come very soon, the company will shut down operations. They have simply run out of ways to raise capital even after short-term loans and reverse stock splits. In addition, subscription service alternatives such as AMC A-List, Sinemia and Cinemark Movie Club have gained traction. Sinemia’s base grows 50% each month and AMC’s A-List now has over 380,000 subscribers, per Variety.

Once the dust settles we’ll begin to debate the lasting legacy of MoviePass. As with most technologies, it’s not as important to be the first but far more important to be the best. How MoviePass differs from most new tech start-ups is that from Day One the business model seemed altogether unsustainable. Sure, companies like Facebook and Spotify, for example, never landed in the black for the first few years. However, they did not have such a dichotomy between revenue coming in versus what was being paid out. The average ticket price in the U.S. this year is $9.25, fairly close to the monthly rate that MoviePass has been charging. So, in theory, if a moviegoer attends one movie a month the company breaks even.

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Yes, MoviePass Will Leave A Legacy. Just Not The One They’ll Claim.