MoviePass, once a revolutionary ticketing service, has shut down down and it’s unclear if it will return.
Helios and Matheson, the parent company of the service, which offered theatergoers the ability to see one movie day for a fee of $10 a month, announced that it would be interrupting the service on Saturday.
Helios and Matheson’s efforts to recapitalize MoviePass have “not been successful to date,” the company said in a press release on Friday.
“The Company is unable to predict if or when the MoviePass service will continue,” Helios and Matheson said in a statement on Friday. “The Company is continuing its efforts to seek financing to fund its operations.There can be no assurance that any such financing will be obtained or available on terms acceptable to the Committee.”
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. ”
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.