MoviePass and its parent company file for Chapter 7 bankruptcy
A good idea that was poorly executedBy Shawn Knight 12 comments
Bottom line: Unlike a Chapter 11 filing in which debts are restructured and the opportunity for business continues, Chapter 7 is an end-game move where a trustee is appointed to sell off assets to repay lenders. In other words, MoviePass and its parent company are done for.
Movie ticket subscription service MoviePass and parent company Helios and Matheson Analytics officially threw in the towel this week, filing for Chapter 7 bankruptcy.
Of course, the writing was on the wall long before today for anyone that bothered to read it.
MoviePass caught fire in the summer of 2017 when it slashed its subscription pricing from $50 a month down to an unbelievable $9.95 per month. At that rate, subscribers could see one movie each and every day - an incredible value, even if you only utilized it a few times a month. For hardcore movie buffs, it was a godsend.
Critics came out of the woodwork, decrying the business model as unsustainable and only setting consumers up for disappointment. And ultimately, they were right.
Even though MoviePass failed, it wasn't a total loss, as others took the idea and ran with it. With a proper business model and the fact that it doesn't have to subsidize ticket costs, AMC has found great success with its own subscription service, Stubs A-List.