MoviePass has never really made sense on a financial level, but an independent audit (via Variety) suggests that the company could be in even worse shape than we thought. If you’re using the service—or thinking about signing up—you should probably get the most out of its too-good-to-be-true offer before it’s too late.
MoviePass’ parent company, Helios & Matheson, lost $150.8 million in 2017 (up from just $7.4 million a year earlier), although revenue was actually up slightly. The audit calls this a “growing concern” and questions whether MoviePass can continue at a loss. One the other hand, the company says it has enough money to survive and expects to turn a profit by 2019.
In the meantime, MoviePass may have found a way to improve its short term financials. The company recently announced a new partnership with iHeartRadio, offering free music streaming when you sign up for a $9.95 per month subscription. The only catch? New signups are also limited to four movies each month, instead of the previous 30-movies-per-month offer. (If you already signed up, don’t worry, nothing’s changed for your subscription.)
MoviePass hasn’t explained the reason behind this shift, though it could be directly related to the iHeartRadio partnership. However, it’s also possible the company may be trying to stop its financial bleeding a little bit. After all, every time someone with a MoviePass subscription sees a movie the company covers the price of the ticket and loses money. 30 movies per customer per month adds up fast (even if most people don’t actually see that many films). Four movies is a lot less money.
Thankfully, this change isn’t permanent. In a statement to Lifehacker, a PR representative said that MoviePass plans to return to its old 30 movies per month offer, though it’s unclear exactly when that might happen.
Given the company’s current financial state, however, you may not want to wait much longer if you’re itching to give MoviePass a shot. And if you’re already a paying member, make the most of the service now, before it’s too late.
On – 20 Apr, 2018 By Jacob Kleinman