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MoviePass, Inc. is an American subscription-based movie ticketing service[2][3] owned by co-founder Stacy Spikes.[4]

Key Information

The service was launched in 2011 and allowed subscribers to purchase up to a movie ticket a day for a monthly fee.[5] The service utilized a mobile app, where users check in to a theater and choose a movie and showtime, which resulted in the cost of the ticket being loaded to a prepaid debit card, which was used to purchase the ticket from the movie theater.

In 2017, the service was acquired by Helios and Matheson Analytics (HMNY) and the subscription cost was significantly lowered to $9.95 per month. Membership ballooned to over three million subscribers by June 2018, but the service began to suffer from financial issues, which ultimately caused the service to shut down in September 2019. On January 28, 2020, MoviePass' parent company HMNY filed for Chapter 7 bankruptcy and announced that it had ceased all business operations.[6][7]

On November 10, 2021, MoviePass co-founder Stacy Spikes was approved ownership of the company by a New York bankruptcy court judge. Spikes—who was fired from the company in 2018, shortly after it was acquired by HMNY—announced a relaunch of the service in 2022.

History

[edit]

Original service

[edit]

MoviePass was founded in 2011 by technology and entertainment entrepreneurs Stacy Spikes and Hamet Watt.[8][9] It was backed by major investors including True Ventures, AOL Ventures, Lambert Media, Moxie Pictures and other investors.[10]

The company launched in beta in June 2011 in San Francisco.[11] During initial trials, it encountered resistance from movie theater chains, resulting in the company going on a "temporary hiatus".[10] At first, MoviePass operated with a voucher system. Members printed a voucher on their home computers and redeemed them for movie tickets at participating cinemas. In August 2011, the company partnered with Hollywood Movie Money to conduct its service through its preexisting voucher program and cinema network.[12]

The voucher system was replaced after users complained it was cumbersome. In October 2012, following a national beta test, the service switched to a mobile app and electronically preloaded prepaid card. While MoviePass claimed the card could be used at all cinemas that accepted major credit cards, there was still some hostility from the industry, including AMC Theatres, who publicly disassociated itself from the service.[13][14]

In June 2016, MoviePass named Mitch Lowe, a former executive of Netflix and Redbox, as its new CEO. Lowe had been an advisor to the company since 2014.[15] Under Lowe, the service began to experiment with different pricing models; Lowe stated that his eventual goal was to have a low-end service at around $20 per month, ranging up towards a high-end service at around $100 with unlimited movies and availability of 3D screenings. In some regions, the service tried offering different subscription plans to users, such as a $50 plan for six movies per month, or $99 for unlimited—both allowing users to purchase tickets to 3D screenings. The new plans were criticized by those who felt that they were designed to gouge "unprofitable" frequent users of the service.[16][17]

In July 2016, MoviePass unveiled a new plan structure effective in September, with tiers based on two, three, or unlimited movies per month. Prices vary by region, with (for example) the two-movie-per-month plan costing from $15 in small markets to $21 in larger ones. The unlimited plans were also modified to remove the previous restriction of one film every 24 hours, with prices ranging from $40 to $50 per month. Lowe argued that the new plans were designed to appeal to those who did not go to movies often.[18] In December 2016, the service had 20,000 subscribers.[19]

Studio Movie Grill purchased a stake in the company in December 2016. MoviePass and Studio Movie Grill were also partnering on testing food features through the MoviePass app including OpenTable (purchases) and Explore More (menu).[20]

Helios and Matheson subsidiary

[edit]

In August 2017, a majority stake in MoviePass was sold to the analytics firm Helios and Matheson. At the same time, the company announced that it would lower its price for an unlimited plan allowing one film per-day, to $9.95 per month. Lowe explained that "after years of studying and analysis we found that people want to go to the movies more often, but the pricing keeps going up, and that prevents them from going more. We're making it more affordable for people." Helios and Matheson's CEO Ted Farnsworth stated the service wanted to increase the size of its userbase in order to analyze viewing habits for targeted advertising. Farnsworth compared the model to those of Facebook and Google, whose free services are subsidized by the collection of personal information for advertising.[21][8] After announcing their new pricing, the company's website went down due to the increase in traffic.[22] By September 2017, the number of subscribers had increased to 400,000, to 600,000 in mid-October, to one million in December, and two million in February 2018. In June 2018, the company announced in a press release that it had more than three million paying subscribers.[23][24][25]

Helios advanced MoviePass $55 million from December to February 20, 2018. MoviePass then converted the advances from debt to capital. Helios ownership stake thus increased from 62.4 percent to 81.2 percent. Another $35 million in advances converted to capital put Helios to 91.8 percent allowing for a merger unilaterally initiated by the Helios board.[26] On January 19, 2018, at the Sundance Film Festival, MoviePass announced the new subsidiary MoviePass Ventures, which would co-acquire films with traditional distributors.[27][28]

In February 2018, the price further dropped to $7.95 per month for new customers if they paid annually.[29] In March, they lowered it to $6.95.[30] In April 2018, Helios and Matheson acquired the movie listings website Moviefone from Verizon Communications's digital media subsidiary Oath Inc., with Verizon taking a stake in MoviePass stock.[31][32]

Also in April 2018, MoviePass quietly removed the unlimited plan for new customers, and replaced it with a new plan limited to three movies per-month, bundled with a complimentary three-month trial of iHeartRadio All-Access. Lowe stated that he was not sure if the previous plan would be reinstated, explaining that "We just always try different things. Every time we try a new promotion, we never put a deadline on it."[33] There was also a change that prohibited MoviePass customers from buying multiple tickets to "select" movies.[34] The unlimited plan was reinstated two weeks later, with the limited plan maintained as a cheaper option at the $7.95 price point; Lowe stated that the company was "absolutely committed" to keeping the unlimited option.[35][36]

Financial issues

[edit]

In May 2018, MoviePass' cash expenses exceeded its revenues by $40 million and the company announced that it expected to run a deficit of $45 million in the month of June.[37][38] In late June 2018, Forbes reported that MoviePass was responding to the creation of the competitor AMC Stubs A-List by announcing new fees for its service, with surge fees added to popular films and prime timeslots.[38] The peak pricing rolled out was $2 to $6 extra during peak times. In the summer of 2018 the company launched a $164 million bond sale.[39][40] MoviePass said subscribers could waive one peak fee per month.[41] At the end of the month, MoviePass announced it would begin selling merchandise.[38]

On July 2, Helios and Matheson Analytics filed to raise $1.2 billion to keep MoviePass solvent.[38] They filed to sell debt and securities.[42] Following a "service interruption" on July 26, the firm announced that it was forced to borrow $5 million in order to continue its operations; auditors doubted whether the company would be able to remain in business.[2] The weekend following this disruption, there were reports that screenings of Mission: Impossible – Fallout had been blacked out from the service.[43] The following Monday, the company announced it would not be offering its services for upcoming major releases, such as The Meg (which was projected to debut to about $20 million), but would continue operating for smaller films, albeit with the continued peak pricing.[44]

On August 6, 2018, MoviePass backtracked on plans to raise its monthly fee from $9.95 to $14.95,[45] but announced that it would instead limit these subscribers to three free tickets per-month, with any further screening offering a $5 discount on the ticket price instead. MoviePass stated that this measure was intended to "protect the longevity of our company and prevent abuse of the service."[46] On August 16, 2018, MoviePass announced that it would also limit the service's film options to "up to six films to choose from daily, including a selection of major studio first-run films and independent releases".[47]

By early August 2018, Helios and Matheson completed the acquisition of Emmett Furla Oasis Films assets for the MoviePass subsidiary, MoviePass Films.[48] On August 24, 2018, MoviePass announced that it had ceased providing its previous annual unlimited plan, with all subscribers transitioned to the monthly limited plan. Subscribers who do not wish to have this plan were instructed to cancel their subscriptions by August 31, 2018, to receive a pro-rated refund (as per the MoviePass terms of service, users who cancel their subscription may not re-join the service for 9 months).[49] By October, reportedly over a million subscribers had cancelled the service, and by April 2019, paying subscribers had fallen over 90% from its peak, to 225,000.[50][51]

In November 2018, a class action lawsuit was filed in San Francisco for not following through on its promises by blacking out various popular movies. On February 2, 2019, another class action suit was filed in New York state court against MoviePass for using bait-and-switch tactics.[52]

The company announced its closure on September 14, 2019, because "efforts to recapitalize MoviePass have not been successful to date."[53] On September 17, 2019, Ted Farnsworth resigned as MoviePass CEO and chairman while placing an offer for MoviePass assets and related businesses: Moviefone, MoviePass Films production company, MoviePass Ventures film co-acquisition unit.[54]

On November 10, 2021, a bankruptcy judge allowed the sale of the company back to one of the original founders, Stacy Spikes. Spikes has announced that the company is exploring a relaunch.[55]

2022 relaunch

[edit]

In August 2022, after co-founder Stacy Spikes reacquired the company, Spikes announced the service would relaunch. Its new pricing model would be a tiered system, with $10, $20, and $30 options, with variation by market. The firm announced there would be a waitlist with a limited number of users under its beta model, and its launch would differ from region to region based on engagement.[56][57][58][59][60]

In September 2022, Insider reported that the Moviepass' beta relaunch will kick off in Chicago, Dallas and Kansas City starting on Labor Day, adding that the subscribers can watch up to five movies in a month. A week prior to this announcement, the company said that more than 775,000 people signed up to the waitlist.[61]

In January 2023, MoviePass raised seed financing led by Animoca Brands for an undisclosed amount. MoviePass said it plans to use the new funding to accelerate the beta relaunch of its movie theatre subscription service, and to develop and implement the company's Web3 strategy, which includes virtual reality cinema experiences and using technology to drive traffic to theaters. As of January 2023, the MoviePass beta version is live in nine U.S. markets including Atlanta, Chicago, Dallas, Houston, Indianapolis, Kansas City, Oklahoma City and Tampa Bay.[62]

Accolades

[edit]

MoviePass was named as one of the "25 Most Disruptive Apps of 2012" and part of "The Best of Everything in 2012" by Business Insider.[63][64] The 2017 change in business model was successful in attracting customers; the service reported having 2 million subscribers in February 2018. That same month, the company announced at the Sundance Film Festival that it would also acquire and distribute films under the new subsidiary, MoviePass Ventures.

Operation

[edit]

Subscribers to MoviePass were issued a branded prepaid debit card. Using the MoviePass mobile app, users checked-in at a supported cinema, and selected a film and showtime occurring within the next 30 minutes; the card was automatically loaded with the amount of money needed to purchase a single ticket from the cinema for that film. The user then purchased their ticket as usual, using their MoviePass card as their payment method.[65] Hence, the service was subsidizing the purchase of tickets directly from the cinema by the customer. Some cinemas supported e-tickets through MoviePass.[66][21][67] MoviePass said that its service was supported at 91% of U.S. cinemas. One regional dine-in chain, Studio Movie Grill, made an investment in MoviePass, and partnered to pilot features such as food ordering from within the app.[68]

The service went through several pricing structures following its original invite-only launch (including those limited to two or three films per month, and "unlimited" plans, with pricing based on market size), before announcing in August 2017 that it would switch to offering a plan with a single film per day priced at $9.95 per month.[69] The change in business model came with the acquisition of a majority stake in the company by an analytics firm, which sought to widen the service's reach so it could collect more information on customer viewing habits.

The MoviePass service had several limitations. It could not be used for screenings in specialty formats such as 3D or IMAX. The service also did not support advance purchase of tickets, and only allowed solo purchases.[66][70][67] Effective April 2018, a user could only use MoviePass on a particular film once.[71] As of July 2018, certain screenings had possible additional fees based on demand.[72]

Criticism and controversy

[edit]

The business model of MoviePass faced notable resistance from major cinema chains since its launch; the company's 21-theatre pilot in San Francisco was called off after objections by AMC Theatres and Landmark Theatres, who were included in the slate of locations without their knowledge. Stacy Spikes explained to Deadline Hollywood that he "imagine[d] a day where studio executives can see real-time decisions that subscribers are making from their phones and devices. If studios say they are not interested in being able to talk to their customers, knowing what they are thinking and being able to notify them of things like ancillary items, and that theater owners aren't interested in having these people go to the movies more, and drive up concessions sales, and having us put all this in the palms of their hands, then I'm in the wrong business."[10]

Following the announcement of MoviePass' new pricing model in August 2017, AMC stated that it was "actively working now to determine whether it may be feasible to opt out and not participate in this shaky and unsustainable program", as "by definition and absent some other form of other compensation, MoviePass will be losing money on every subscriber seeing two movies or more in a month", and that lowering its prices in response to the service would harm the customer experience.[73] The service's original pricing depended on a business model similar to those of health clubs, where the company would profit more if customers paid for the service but only used it on occasion.[8][73] On March 13, 2019, MoviePass executive VP Khalid Itum departed the company. Itum had assumed day-to-day control of the service since November 2018.[74]

In an effort to limit costs during the height of the service's popularity, MoviePass CEO Mitch Lowe directed the product team to implement three programs that were designed to artificially throttle users' benefits. First, they forcibly reset the passwords for approximately 75,000 of the most active user accounts under the false pretense of detecting "suspicious activity".[75][76][77] When these users tried to change their passwords, the system would be non-functional, leading to service outages of a week or more.[75] Second, they implemented a "random" audit process where some users would be required to take a photograph of their ticket stub to verify that they had actually watched the movie. In truth, these audits targeted the 450,000 most active users and the verification process was prone to errors, sometimes leading to closure of the account.[75] Third, they added a hidden "trip wire" for users who saw more than three movies in a month which prevented them from using the service at all when this undisclosed limit was reached.[75][78] Other executives who were aware of the programs feared consumer backlash and a Federal Trade Commission (FTC) investigation if they were ever discovered.[75] The FTC filed a legal complaint against MoviePass over these deceptive business practices, who chose to settle the case in 2021.[79]

On August 20, 2019, cybersecurity firm SpiderSilk informed MoviePass of a data breach involving sensitive data including credit card numbers for tens of thousands of MoviePass users.[80]

MoviePass Ventures

[edit]

On January 19, 2018, at the Sundance Film Festival, MoviePass announced the new subsidiary MoviePass Ventures, which would co-acquire films with traditional distributors. Lowe explained that the company wanted to "bring great films to the big screen across the country for our subscribers", and that "given the successes we have demonstrated for our distributor partners in ensuring strong box office in the theatrical window, it's only natural for us to double down and want to play alongside them – and share in the upside."[27][28]

MoviePass Ventures' first acquisition (in partnership with The Orchard), Bart Layton's American Animals, was on June 1, 2018, while their second, Gotti starring John Travolta as the titular mob boss, was released on June 15, 2018.[81] The MoviePass Venture operation was questioned by some in the industry, with one independent studio head telling Deadline Hollywood: "It used to be in distribution, we'd all gossip whether a studio was buying tickets to their own movie to goose their opening, but in the case of MoviePass, there's no secret: They're literally buying the tickets to their own movie".[82] According to MoviePass' own reports, the service made up 25–35% of American Animals' opening weekend ticket sales, and around 40% of Gotti's.[83]

MoviePass Venture films

[edit]

It was noted that the MoviePass Ventures film Gotti had large disparities between critic and audience scores on Rotten Tomatoes, with most of the positive reviews coming from new users, and those whose only other review was of fellow release American Animals. This led to allegations that MoviePass was attempting to manipulate reviews in order to bolster the service.[84][85]

Title Release date Director Production companies Distributor
American Animals[81] June 1, 2018 Bart Layton
co-distributed with The Orchard
Gotti[81] June 15, 2018 Kevin Connolly
co-distributed with Vertical Entertainment

MoviePass Films

[edit]

In May 2018, Helios and Matheson Analytics, the parent company of MoviePass, acquired the option to purchase the assets of Emmett/Furla Oasis plus gain its executives' expertise in making films for a new subsidiary, MoviePass Films. The new company would be 51% owned by Helios and the remainder by EFO.[86] By early August 2018, Helios and Matheson completed the acquisition of Emmett Furla Oasis Films assets for the MoviePass subsidiary, MoviePass Films. The first film produced under the MoviePass Films was announced to be 10 Minutes Gone starring Bruce Willis,[87] which the first of a three film pact with Willis.[88] In late September 2018, the company acquired equity stakes and co-distribution in two films distributed by Neon to be released soon.[89]

In March 2019, The Boies/Schiller Film Group filed suit on Tuesday, accusing Emmett/Furla Oasis Films of breaching a deal to produce Escape Plan sequels starring Sylvester Stallone. According to the suit, Boies/Schiller put up a $6 million loan for the $65 million project. The arrangement also gave Boies/Schiller rights to finance and produce the sequels, Escape Plan 2: Hades and Escape Plan: The Extractors. Boies/Schiller alleges that Emmett/Furla Oasis Films breached that agreement, and did not allow Boies/Schiller to put up financing for the sequels. The suit claims Emmett/Furla also failed to pay an executive producing fee on each of the two movies.[90]

Oasis Ventures Entertainment sued MoviePass Films on October 14, 2019, over the theft of films and for lack of consent from Oasis in making the deal with Helios and Matheson.[91]

MoviePass Films was the final company to bear the MoviePass name after MoviePass was shut down in 2020, thus being Boss Level the last released film of the company in 2021. Originally they had acquired American Traitor: The Trial of Axis Sally but after its closure they will no longer produce it, the rights of the film were transferred to Vertical Entertainment and Redbox Entertainment.

MoviePass Films

[edit]
Title Release date Director Production companies Distributor
A Vigilante March 10, 2018 Sarah Daggar-Nickson
Saban Films
Escape Plan: The Extractors July 2, 2019 John Herzfeld
  • Emmett/Furla/Oasis
  • Highland Film Group
  • Diamond Films Productions
  • Leomus Pictures
  • The Fyzz
  • Ingenious Media
 Lionsgate/Summit Entertainment/Grindstone Entertainment Group (United States)


Universal Pictures (International)

10 Minutes Gone September 27, 2019 Brian A. Miller
  • Emmett/Furla/Oasis
  • Diamond Film Productions
  • Highland Film Group
 Lionsgate/Grindstone Entertainment Group
Boss Level March 5, 2021 Joe Carnahan
  • Highland Film Group
  • Emmett/Furla/Oasis
  • Diamond Film Productions
  • The Fyzz
  • Ingenious Media
  • WarParty Films
 Hulu

Acquired films

[edit]
Title Release date Director Notes
Monsters and Men September 28, 2018 Reinaldo Marcus Green Equity stakes & co-release with Neon
Border May 10, 2018 Ali Abbasi Equity stakes & co-release with TriArt Film
Villains September 20, 2019 Dan Berk

Robert Olsen

Equity stakes & co-release with Gunpowder & Sky and Bron Studios
The Reckoning August 20, 2020 Neil Marshall Equity stakes & co-release with Highland Film Group

See also

[edit]
  • Sinemia – Social platform and subscription-based service for film tickets

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

MoviePass

View on Grokipedia
from Grokipedia
MoviePass is an American subscription-based movie ticketing service that allows subscribers to purchase and redeem tickets to films at participating theaters for a flat monthly fee, functioning as a " for movies" by providing access to theatrical releases without per-ticket costs. Founded in 2011 by entrepreneurs and Hamet Watt in , MoviePass initially operated with tiered pricing plans ranging from $30 to $50 per month for limited or unlimited access to screenings, aiming to boost theater attendance through a profit-sharing model with cinemas. The service struggled early on with low adoption and resistance from theater chains concerned about lost revenue, but it gained traction after securing venture funding and expanding to major markets. In August 2017, analytics firm acquired a majority stake in MoviePass and dramatically lowered the subscription price to $9.95 per month for one movie per day at most theaters, sparking explosive growth to over 3 million subscribers by mid- and temporarily revitalizing the struggling industry. However, under CEO Mitch Lowe, the aggressive proved unsustainable, as the company paid full ticket prices to theaters while earning minimal revenue, leading to massive losses of approximately $100 million in the second quarter of alone and repeated restrictions on usage, such as blocking premium formats and surge films. Founders and Watt were ousted shortly after the acquisition, amid allegations of racial bias and mismanagement later explored in the 2024 HBO documentary MoviePass, MovieCrash. By September 2019, MoviePass shut down operations after its parent company and Matheson exhausted funding attempts and filed for Chapter 7 bankruptcy in January 2020, leaving millions of subscribers without service and sparking lawsuits over deceptive practices and data privacy breaches. reacquired the MoviePass brand and assets for $14,000 in November 2021 through a New York court ruling, vowing to restore its original vision free from corporate overreach. The service relaunched in September 2022 with a revised model using and credits to ensure profitability, expanding nationwide by 2023 to cover over 4,000 theaters—representing 95% of U.S. screens as of November 2025—without blackouts on standard 2D screenings. As of November 2025, MoviePass offers tiered plans starting at $10 per month for a limited number of standard 2D screenings, with higher tiers providing credits redeemable for up to one movie per day (unused credits roll over) via a that generates virtual cards for in-theater redemption, supported by equity s including an from Comcast's Forecast Labs in 2024 and an additional $100 million in May 2025 to develop ancillary features like a fantasy gaming platform. Despite its turbulent past, the revived MoviePass has aimed to foster sustainable growth in cinema attendance, though it faces competition from theater-specific loyalty programs and streaming services.

History

Founding and early operations

MoviePass was founded in 2011 by entrepreneurs Stacy Spikes and Hamet Watt, who envisioned a subscription-based service allowing users to access movie tickets for a flat monthly fee, aiming to disrupt traditional ticket purchasing by leveraging bulk buying and data analytics. The initial concept drew inspiration from streaming models like , but focused on theatrical releases, with the company securing $1 million in seed funding from AOL Ventures and True Ventures to develop the platform. Early challenges included resistance from theater chains concerned about lost revenue, but the founders persisted in building partnerships for ticket fulfillment. The service launched in beta during the summer of 2011 in the , where subscribers could attend unlimited screenings for $50 per month, though with restrictions such as one movie per day and no access to premium formats like 3D or . By October 2012, MoviePass expanded its beta nationally, introducing tiered that varied by market size, ranging from $25 to $40 monthly for unlimited access in participating theaters, while integrating payments for seamless ticketing through partners like . Over the following years, the service gradually rolled out to additional markets, reaching 40 metro areas by mid-2016, with stabilized at $30 to $50 per month depending on location and including limitations on frequency to manage costs. Key milestones in this pre-2017 phase included forging operational partnerships with major theater chains such as AMC and Regal, enabling broader availability and user convenience through integrated booking systems. By the end of 2016, MoviePass had grown to approximately 20,000 subscribers, generating approximately $6.8 million in annual revenue while refining its model to balance user growth with theater relations. This steady expansion laid the groundwork for further scaling, though the core subscription approach remained focused on encouraging frequent moviegoing without aggressive undercutting of ticket prices.

Expansion under Helios and Matheson

In August 2017, Inc., a publicly traded data analytics firm, acquired a majority stake in MoviePass for $27 million, transforming the startup into a of the larger company. This acquisition provided MoviePass with significant capital and access to 's resources, enabling aggressive expansion strategies aimed at disrupting the traditional industry. Under the leadership of CEO Ted Farnsworth and MoviePass CEO Mitch Lowe, the company shifted focus toward leveraging data analytics to monetize user behavior while scaling subscriber numbers rapidly. Founders and Watt were ousted shortly after the acquisition, amid allegations of racial bias later explored in the 2024 HBO documentary MoviePass, MovieCrash. A pivotal change came shortly after the acquisition with the launch of a new unlimited subscription plan priced at $9.95 per month in August 2017, a drastic reduction from the previous tiered model that ranged from $30 to $50 monthly for limited viewings. This aggressive pricing fueled explosive growth, surging subscribers from approximately 20,000 at the time of the deal to over 1 million by December 2017 and exceeding 3 million by June 2018. The low barrier to entry attracted a broad user base, positioning MoviePass as a major player in the entertainment sector and driving widespread media attention to its potential to revive theater attendance. To offset the low subscription revenue, MoviePass relied on a multifaceted model that included data sales to film studios and distributors for insights into audience preferences, partnerships for revenue sharing with theaters on ticket sales, and targeted advertising opportunities derived from user viewing patterns. The company paid theaters the full face value of each ticket purchased through the app, aiming to capture value through ancillary streams like these analytics and promotional tie-ins. However, this approach began revealing operational strains as usage spiked, prompting measures such as GPS-based location verification to confirm users were at theaters before issuing tickets and restrictions to standard 2D screenings only, excluding premium formats like 3D or to control costs. The hype surrounding MoviePass's growth propelled Helios and Matheson stock to a peak of nearly $39 per share in October , up from around $2.50 earlier that year, reflecting investor enthusiasm for the subscription model's disruptive potential. This valuation surge underscored the temporary market optimism but also highlighted the risks of the high-growth strategy, as the company's focus on user acquisition outpaced sustainable profitability.

Financial collapse and bankruptcy

MoviePass's aggressive $9.95 monthly subscription pricing, which allowed unlimited movie viewings, proved unsustainable as subscriber usage far exceeded revenue projections, leading to massive operational losses. In 2018, the company reported a net loss of $266.8 million for the full year, primarily driven by subsidizing ticket costs that averaged $9–$15 per admission while collecting only the flat fee from users. This financial strain intensified under parent company , which had acquired a controlling stake in MoviePass in 2017 and poured in over $100 million in funding that year alone, yet could not stem the cash burn. By early 2019, subscriber numbers had plummeted from a peak of over 3 million in mid-2018 to approximately 225,000, reflecting widespread dissatisfaction with service restrictions and hikes implemented to curb losses. and Matheson continued to report deepening deficits, with preliminary figures indicating ongoing quarterly losses exceeding $80 million in the first half of the year, exacerbating the company's . To address these issues, MoviePass introduced measures like "surge " for popular films and limits on daily bookings, but these alienated users and failed to restore profitability. The mounting troubles culminated in repeated service disruptions, including multiple blackouts in 2018 that blocked access to major blockbusters like Mission: Impossible – Fallout and to avoid peak-day losses, and a complete operational halt in July 2019 for "technical upgrades" that lasted several weeks amid recapitalization efforts. These interruptions, combined with the unsustainable model, triggered legal scrutiny. In February 2019, subscribers filed a class-action alleging a "" scheme for promising unlimited access while imposing hidden restrictions. Additionally, an August 2019 exposed user details and personal information, prompting further class-action suits over failures and leading to FTC allegations of deceptive practices, including misleading users on service availability and inadequate data security. The FTC ultimately settled with MoviePass executives in 2021, prohibiting future misrepresentations but stemming from 2019 events. Unable to secure viable financing or partnerships, filed for Chapter 7 bankruptcy on January 28, 2020, listing assets between $1 million and $10 million against $60.9 million in liabilities. This process dissolved MoviePass's original operations, with a appointed to sell off remaining assets, effectively ending the subscription service as it had been known and marking the collapse of its disruptive but unviable business model.

Relaunch and recovery

In November 2021, , the co-founder of the original MoviePass, acquired the company's and other assets out of for $14,000 through a court-approved sale in the Southern District of New York. This purchase allowed Spikes to form a new private entity, MoviePass, Inc., distinct from the previous publicly traded version under , with the goal of rebuilding the service on a more financially viable foundation. The acquisition marked a return to Spikes' vision, emphasizing lessons from the original service's unsustainable unlimited model that led to its 2019 shutdown. The relaunched MoviePass was officially announced in February 2022, with a beta rollout beginning on September 5 in select markets including Phoenix, , , and . Unlike the prior iteration's flat $9.95 unlimited plan, the new structure featured tiered subscriptions starting at $10 per month, providing users with credits redeemable for movie tickets at participating theaters, along with options up to $30 for more credits; this credit system aimed to balance user access with cost control by limiting usage per tier. The model prioritized sustainability through strategic theater partnerships, such as with Regal and AMC, to share revenue and predict demand more accurately via data analytics. Initial subscriber growth was robust, with over 460,000 people joining the waitlist within a single day of its August opening, signaling strong consumer interest despite the prior collapse. By the end of , the service had attracted hundreds of thousands of active users in its beta phase, focusing on gradual expansion to ensure operational stability. However, the early rollout faced challenges, including app glitches reported by users during check-ins and reservations, as well as limited theater availability confined to specific chains and markets, which restricted access for potential subscribers outside those areas. To support the recovery, reassembled key elements of the original team, including co-founder Hamet Watt as , and hired experts in data analytics to enhance and personalize user recommendations, preventing the overutilization issues that doomed the first version. This emphasis on analytics-driven partnerships helped foster a more collaborative relationship with theaters, contributing to the service's initial steps toward long-term viability.

Recent developments

In 2023, MoviePass achieved its first profitable year in company history, with subscribers viewing over 1 million movies through the platform. The company credited this turnaround to its credit-based subscription model, bolstered by for personalized recommendations and to incentivize attendance at less popular showtimes. In June 2024, MoviePass secured an from Comcast's Forecast Labs to support enhancements and expand customer acquisition via targeted TV advertising campaigns. This funding aligned with the service's post-bankruptcy growth strategy, leveraging Comcast's media resources to boost visibility. By 2025, MoviePass had expanded its coverage to over 4,000 theaters across the , including major chains like AMC, Regal, and Cinemark. The company also introduced more flexible subscription plans based on credits and offered promotional codes to lower entry barriers for new users. Throughout 2025, MoviePass promoted high-profile releases such as The Black Phone 2, encouraging subscribers to view the film in theaters during its October rollout. While some users reported technical glitches and booking issues on forums like , the platform demonstrated overall operational stability amid sustained subscriber engagement. In November 2025, MoviePass explored further reinvention by advancing its Mogul platform, integrating features for outcomes and fantasy leagues in a public beta rollout. This initiative, supported by a $100 million commitment earlier in the year, aimed to diversify beyond traditional subscriptions into interactive gaming elements.

Business Model and Operations

Subscription structure

MoviePass operates on a tiered subscription model designed to provide flexible access to movie tickets while managing costs through a credits-based system. The service offers four main plans, with pricing and credit allocations varying slightly by market but generally structured as follows (as of November 2025, following a $3 per plan increase in May 2025): the Basic plan at $13 per month provides 34 credits, sufficient for approximately 1 to 3 movies depending on showtime and format; the Standard plan at $23 per month includes 72 credits for 3 to 7 movies; the Premium plan at $33 per month delivers 113 credits for 5 to 11 movies; and the Pro plan at $43 per month (available in select markets) offers around 640 credits, enabling up to 30 movies or one per day. Higher tiers include perks such as access to premium formats like 3D and , subject to additional credit deductions for those options. The credits system allows subscribers to redeem points toward tickets via the MoviePass app, where the credit cost per movie varies based on factors like day of the week, time of day, and theater location—matinees and Tuesdays typically cost fewer credits (e.g., 21-25 for a basic showing), while peak evening screenings or premium experiences require more (up to 34 or higher). Credits are allocated monthly and can roll over for up to two months, with a cap at twice the plan's monthly amount (e.g., 68 credits maximum for the Basic plan), but unused credits beyond that expire. Unlike its historical $9.95 unlimited plan from , the current structure includes no blackout periods for major releases, helping to balance demand without restricting access to popular films. Subscriptions require no long-term contracts, allowing users to cancel anytime without penalties, which enhances flexibility for occasional viewers. This model typically yields significant savings compared to the average U.S. movie ticket price of about $11.50 in 2025, with even the Basic plan offering potential discounts of over 50% on multiple viewings. Users select a showtime in the app to unlock the virtual card and must purchase the ticket within 2 hours; the service is available exclusively , covering over 4,000 theaters including major chains, independents, and art houses. MoviePass generates revenue primarily through subscription fees, supplemented by commissions from theater partners—often up to 20% of ticket values through negotiated —and ancillary services such as occasional promotions tied to concessions or merchandise discounts in participating venues. This multi-stream approach supports the service's operations while incentivizing theater attendance.

Technology and partnerships

MoviePass's technical infrastructure relies on a that facilitates seamless ticketing through a virtual card system, introduced in 2023 to support online purchases and contactless payments at participating theaters. This allows users to buy tickets directly via theater websites or apps, enabling real-time seat selection where available through the venue's system, while the app's feature unlocks access to prevent unauthorized sharing by verifying the user's location at the theater. The platform integrates with over 4,000 theaters nationwide, including major chains like AMC, Regal, and Cinemark, ensuring broad compatibility for ticket redemption without proprietary hardware. Since its 2023 relaunch, MoviePass has incorporated for , analyzing user behavior patterns and theater inventory to optimize ticket allocations and maintain profitability. This AI-driven approach shifts demand toward off-peak showtimes via a credits-based model, effectively avoiding the higher costs associated with surge pricing on popular screenings. The system processes millions of transactions annually, supported by cloud-based infrastructure on (AWS) for scalable handling of high-volume data and real-time operations across its theater network. In May 2025, MoviePass received a $100 million to develop the Mogul fantasy gaming platform, enhancing user engagement and ancillary through app integrations. Key partnerships bolster this ecosystem, notably a 2024 equity investment from Comcast's Forecast Labs, which enhances customer acquisition through targeted TV advertising and enables data-sharing integrations with Comcast's Peacock streaming service for cross-platform user insights and promotional tie-ins. Security measures emphasize location verification during check-ins to curb account sharing, alongside compliance with enhanced privacy regulations following the 2021 Federal Trade Commission settlement addressing prior data protection failures. Early GPS-based tracking efforts during the company's expansion phase under Helios and Matheson encountered technical glitches, such as inaccurate location detection leading to access denials.

User experience and features

Users begin the onboarding process by downloading the MoviePass from the or and signing up via the website or app, often using social connections like , , or Apple accounts for streamlined profile creation. This setup includes entering payment details and basic preferences, such as location for theater recommendations, enabling immediate access without waiting for a physical card. Upon completion, users receive a virtual card instantly, which can be added to digital wallets like or for seamless use. The in-theater experience emphasizes convenience through the app's functionality. Users search for showtimes in real-time, select a screening to unlock the virtual card, and then present it at the or use it for online purchases through theater websites or ticketing platforms like within 2 hours. No physical tickets are required; the virtual card deducts from the user's allocated credits to cover standard 2D ticket prices, with the app sending notifications for reservations and availability. This process supports access to over 4,000 theaters nationwide, though one reservation per day is the limit. Additional perks enhance the subscription's value for regular moviegoers. Unused monthly credits roll over for up to two months, rewarding frequent users by allowing accumulation for higher-value screenings. Promotional offers, such as discounted initial months for new subscribers via partnerships like , provide entry-level savings, while gifting options for multi-month bundles support shared experiences among family or friends through separate accounts. Family-oriented plans encourage multiple individual subscriptions for group outings, though no single-account sharing feature exists. Customer support focuses on resolving common operational issues through at [email protected] or in-app chat, addressing problems like card declines from missed check-ins or expired reservation windows. The has documented over 60 complaints in recent years related to service disruptions and credit denials, with many resolved via direct assistance. Accessibility features align with participating theaters' offerings, including options for subtitles and audio descriptions on select screenings, though MoviePass itself does not specify direct integration with voice assistants. The app's intuitive interface supports diverse users by providing clear navigation for showtime searches and reservations without advanced technical requirements.

Film Production Initiatives

MoviePass Ventures

MoviePass Ventures was established in January 2018 as a wholly-owned subsidiary of MoviePass, announced during the , with the aim of entering the film financing and distribution space by co-acquiring independent films alongside traditional distributors. The division sought to leverage MoviePass's vast subscriber data—gathered from millions of users—to identify and support projects likely to resonate with its core demographic of younger, frequent moviegoers, thereby driving theatrical attendance and creating new revenue streams beyond subscriptions. The investment strategy of MoviePass Ventures centered on backing mid-budget independent films with strong potential for wide theatrical release, focusing on co-productions and acquisitions that could benefit from targeted powered by user insights. Key activities included forging partnerships with established studios and distributors to share in profits from , , and ancillary markets, while emphasizing genre-driven content aligned with subscriber preferences to maximize engagement and attendance. This data-informed approach was intended to disrupt traditional Hollywood financing by prioritizing audience analytics over conventional market predictions. Operations of MoviePass Ventures were short-lived, ceasing in 2019 as part of the broader financial collapse of parent company , which filed for bankruptcy amid mounting losses and failed recapitalization efforts. Despite its ambitious goal of pioneering a data-driven model for film investment in Hollywood, the venture yielded limited output, with only a handful of projects supported before the shutdown, highlighting the challenges of integrating subscription service data into volatile film economics.

MoviePass Films

Following the 2022 relaunch of MoviePass under co-founder , the company has not established a dedicated division or banner known as MoviePass Films. Instead, efforts have centered on revitalizing the core subscription model, expanding theater partnerships, and introducing innovative features like the Mogul platform—a daily fantasy game for predicting outcomes and engaging fans interactively. This shift emphasizes driving theater attendance and over direct or IP development. While the original MoviePass era (2017–2019) included a production arm for low-budget films, no equivalent initiative has been announced or greenlit in the post-bankruptcy era, with resources directed toward operational profitability and enhancements.

Key produced and acquired projects

MoviePass Ventures, launched in 2018, focused on co-acquiring independent films to integrate with the subscription service, providing subscribers early access or promotional perks to boost attendance. One of its first major deals was the co-acquisition of North American distribution rights to the American Animals (2018), directed by , in partnership with The Orchard for a reported $3 million at the . To promote the film, MoviePass offered members free posters, swag, and priority screenings during its theatrical release, resulting in strong indie performance with over $4 million in domestic earnings. Later that year, MoviePass Films, the production arm formed through the acquisition of Films, secured equity stakes and co-distribution rights for two titles: the police drama (2018), directed by , and the fantasy romance (2018), directed by Ali Abbasi. These acquisitions allowed MoviePass subscribers to view the films as "Bonus Movies" under their plans, enhancing user engagement by tying content discovery to the service's model. earned critical acclaim, including a Grand Prix at , and grossed over $7 million worldwide, while premiered at Sundance and addressed themes of racial injustice. In production, MoviePass Films developed several low-budget action thrillers, often starring , to leverage and streaming markets while promoting theatrical runs via the subscription. Key examples include (2019), a directed by , which marked the arm's first original production and featured Willis alongside . Other notable outputs were (2019), a cyber-terrorism thriller, and (2020), a story, both emphasizing high-concept plots suited for subscriber incentives like bonus credits for premieres. These projects, totaling around eight features between 2018 and 2020, generated visibility for MoviePass but faced mixed reception due to their formulaic nature and limited theatrical impact amid the company's financial struggles. Post-bankruptcy and relaunch in 2022 under co-founder , MoviePass has not announced new film productions or acquisitions as of 2025, shifting focus to service enhancements rather than . Earlier efforts under and Films highlighted the company's attempt to vertically integrate by using films to drive subscriptions, with incentives like exclusive screenings contributing to peak user growth in 2018.

Reception and Legacy

Accolades and achievements

MoviePass achieved significant subscriber growth during its initial boom, surpassing 3 million paying subscribers in June 2018, a milestone that underscored its disruptive impact on the movie ticketing industry at the time. This rapid expansion highlighted the appeal of its subscription model, which allowed users to view one movie per day for a flat monthly fee. Following its relaunch in select markets in 2022 and nationwide expansion in 2023 under co-founder , MoviePass marked another key achievement by surpassing 1 million movies viewed on its platform by early 2024, demonstrating renewed user engagement and operational stability. The company further announced its first profitable year in 2023, attributing the success to a revised credit-based structure and AI-driven features that optimized user spending and reduced costs. This financial turnaround was a pivotal milestone, coming after years of and restructuring. In the film production space, MoviePass Films, the company's distribution arm, backed independent projects that garnered substantial recognition, including 42 award nominations and 16 wins across titles such as American Animals, Monsters and Men, Border, and In Search of Greatness by March 2019. These accolades affirmed MoviePass's contributions to elevating diverse and innovative cinema. The company's comeback narrative received prominent industry attention in 2024, including coverage in Variety of its HBO documentary MoviePass, MovieCrash, which chronicled its rise, fall, and resurgence, and an equity investment from Comcast's Forecast Labs to fuel further growth. By 2025, MoviePass continued its momentum with a $100 million capital from Global Emerging Markets to expand its fantasy gaming platform, Mogul, which launched publicly in October and allows users to predict performance, awards, and results. Additionally, the company introduced its inaugural MoviePass Fan Awards in February 2025, polling members to honor top , performers, and creatives ahead of major industry ceremonies, with Wicked securing multiple categories including Best Picture. These developments, alongside access to over 4,000 theaters nationwide, solidified MoviePass's position as a resilient player in innovation.

Criticisms and controversies

MoviePass faced significant user backlash in 2018 when it abruptly announced a price increase from $9.95 to $14.95 per month, along with new restrictions limiting subscribers to three movies per month and excluding major blockbuster releases for the first two weeks of their theatrical run. These changes, implemented to stem financial losses, were reversed following widespread complaints from subscribers who felt the service no longer delivered on its "unlimited" promise, leading to a surge in cancellations and negative media coverage. In 2021, the (FTC) reached a settlement with MoviePass and its executives over allegations of deceptive practices, including secretly blocking access for heavy users through password invalidations and "trip wires" designed to limit frequent moviegoers, despite marketing the service as providing unlimited access for $9.95 monthly. The settlement required improved measures and prohibitions on misleading claims but imposed no monetary penalties due to the company's . Additionally, the FTC cited failures to encrypt sensitive user data, such as names, numbers, and geolocation information, which contributed to a 2019 exposing tens of thousands of customers' details. Privacy concerns escalated in 2018 when MoviePass's app was revealed to track users' continuously without clear , prompting outcry and the feature's quick disablement by CEO Mitch Lowe. A 2019 class-action accused the company of a "" scheme, alleging deceptive advertising that failed to disclose limitations on access and risks, including unauthorized collection and potential sharing of data with parent company . Executive controversies intensified in 2019 amid investigations into stock manipulation, with CEO Mitch Lowe overseeing operations during a period of executive turnover and SEC scrutiny over misleading investor statements about the service's profitability. Lowe, who stepped down following the company's shutdown, later pleaded guilty in 2024 to conspiracy for inflating MoviePass's stock value through false claims about the sustainability of its low-price model. The 2022 relaunch under new ownership drew criticism for app reliability issues, including frequent crashes and payment processing failures that prevented users from redeeming credits at theaters. By 2025, complaints persisted regarding credit denials at checkout and exclusions from certain theaters unwilling to accept MoviePass's virtual card system, exacerbating user frustration with the service's inconsistent functionality. Broader accusations of misleading marketing centered on the original "unlimited" branding, which the FTC and SEC determined was intentionally deceptive to drive subscriptions while internally planning restrictions to curb usage.

Cultural and industry impact

MoviePass's introduction of an affordable unlimited movie subscription in 2017 catalyzed a broader shift toward subscription-based models in the entertainment industry, prompting major theater chains to develop their own competitive offerings. The service's $9.95 monthly plan for one movie per day highlighted consumer demand for predictable pricing amid rising ticket costs, influencing chains like AMC Theatres to launch AMC Stubs A-List in June 2018, which allowed up to three movies per week for $19.95 to $23.95 depending on location. This response underscored MoviePass's role in normalizing subscriptions for cinema attendance, as evidenced by subsequent programs from Regal Unlimited and Cinemark Movie Club, which collectively enrolled millions of users by 2019 and adapted the model to ensure profitability through tiered access and blackout restrictions. The service became a cultural in 2018, fueling widespread media coverage and memes that captured the frenzy over its seemingly too-good-to-be-true pricing, often portraying it as a disruptive " for theaters" that democratized moviegoing. Users and commentators generated viral content mocking the plan's limitations, such as restrictions on premium formats, while celebrating its role in encouraging frequent theater visits among and Gen Z audiences accustomed to streaming subscriptions. This buzz extended to documentaries like HBO's MoviePass, MovieCrash (), which chronicles the era's hype and subsequent collapse, framing it as a symbol of tech optimism clashing with economic reality in . Economically, MoviePass exerted pressure on theater pricing strategies by injecting significant revenue into the —accounting for about 4% of domestic totals at its 2018 peak—while forcing exhibitors to confront the devaluation of individual tickets in favor of bundled access. The model boosted attendance for independent films by up to 8% through targeted promotions via MoviePass , its financing arm launched in 2018 to support indie production and distribution, thereby diversifying funding for smaller projects amid studio dominance. However, this influx also strained theaters' control over , contributing to industry-wide debates on sustainability and leading to legal challenges over revenue-sharing terms. Following its 2020 bankruptcy and 2022 relaunch under original co-founder , MoviePass adopted a tiered subscription system ($10, $20, or $30 monthly plans based on credits redeemable for tickets), which by 2023-2025 helped normalize flexible, credit-based ticketing across the sector and aided post-pandemic recovery by incentivizing habitual cinema visits. The relaunched model achieved profitability in 2023 for the first time, aligning with broader industry efforts to rebuild attendance through value-driven options amid streaming competition and economic uncertainty. MoviePass's legacy endures as a for tech-disrupted industries, illustrating the perils of aggressive growth without viable revenue streams, as its rapid subscriber surge to over 3 million led to $150 million in losses by mid-2018 and ultimate shutdown in 2019. Analyses portray it as a lesson in balancing innovation with financial prudence, particularly for Black-led startups facing biases, while its innovations in data-driven continue to influence modern platforms.

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  120. https://www.hollywoodreporter.com/business/business-news/former-moviepass-execs-sued-by-sec-1235227994/
  121. https://variety.com/2018/film/news/moviepass-amc-subscription-analysis-1202852457/
  122. https://www.wired.com/story/amc-moviepass-sinemia-moviegoing/
  123. https://mashable.com/article/moviepass-survival-memes-internet
  124. https://www.businessinsider.com/moviepass-memes-instagram-comments-customer-service-2018-7
  125. https://www.theguardian.com/film/article/2024/may/28/moviepass-documentary-hbo
  126. https://www.cnbc.com/2018/02/16/moviepass-slashes-prices-to-7-point-95month-so-how-does-it-make-money.html
  127. https://hbr.org/2018/05/how-to-fix-moviepass
  128. https://www.npr.org/2022/08/26/1119568509/moviepass-is-back-after-its-bankruptcy-the-ceo-says-this-time-will-be-different
  129. https://tms-outsource.com/blog/posts/what-happened-to-moviepass/
  130. https://www.ign.com/articles/moviepass-moviecrash-review
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