MoviePass subscribers have had a rough time for almost all of 2018. The app first crashed back in July, The app then added limitations to users and increased the price. Then it backtracked on the price increase, but added even more limitations. It got even worse and then it got desperate when they started activating canceled accounts. Then just in the last few days, they created a new plan just to enroll members who are no longer subscribed. Maybe there was a points to all the confusion. Customers have been using it less and less, and according to the head of MoviePass’ parent company, that’s exactly what the owners want.
“People are going to less than one movie a month,” said Helios and Matheson CEO Ted Farnsworth. “So technically, subscription alone right now is doing just fine, now it’s tacking on all the other things on top of it.” If people actually used MoviePass, there’s no way the subscription side of its business. maybe just subscribing old users who haven;t checked their emails in order to opt out, has actually worked. Make sure you’re not paying for a subscription. If you;re a former customer, check your email to see if they contacted you and enrolled you into a plan.
Farnsworth also claimed the company has recently secured an additional $65 million in funding to keep things afloat. That news alone made the stock jump up almost 250%. Don’t get too excited though, it’s still at about 5 cents, way down from few months ago.