MoviePass Burn­ing Through Cap­i­tal

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For a subscription of un­der $10 a month to MoviePass, you can go to the movies every day (ini­tially, any­way). In 2012, it was named in Busi­ness In­sider’s “Best of Ev­ery­thing.” It also earned a place in the year’s list of the 25 “Most Dis­rup­tive Apps.” By this sum­mer, it had three mil­lion sub­scribers.

Be­hind the scenes, all is not well. The com­pany has re­struc­tured its prices, changed the num­ber of films you can see per month, added peak pric­ing, and ex­cluded some ma­jor ti­tles. It re­cently re­scinded many of these re­stric­tions, but now you can only watch three movies a month be­fore hav­ing to pay ex­tra. All this has not helped prof­itabil­ity; it’s burn­ing through cap­i­tal at an alarm­ing rate. Last month, it needed an emer­gency loan to keep run­ning. It seems it was too good a deal af­ter all; en­joy it while it lasts.

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