MoviePass Burning Through Capital
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 It recently rescinded many of these restrictions, but now you can only watch three movies a month before having to pay extra.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.