Things don’t seem to be looking good for MoviePass. Yes, MoviePass has been getting more and more subscribers for the past year or so, but it’s hard to ignore its potential non-viability as a business. Sure, it’s a great deal to see unlimited movies for $9.95 a month, but is it sustainable? Many studios didn’t think so, but that hasn’t stopped it from going forth with its bold, new, low-cost approach.
So how is it doing on the money front? Well…it doesn’t seem to be doing so well. MoviePass’ stock went down yesterday after AMC announced its competing service, and earlier today, Ben Fritz over at the Wall Street Journal tweeted the following.
“MoviePass’s monthly cash deficit increased to $40 million in May and estimated $45 million in June, it says in a new filing. Could need $1.2 BILLION ‘to become a profitable company and achieve the economy of scale in the movie industry that we are expecting.'”
So how is MoviePass going to make this money, and is it even possible? In an interesting move, it looks like its parent company, Helios & Matheson Analytics is actually going to be selling $164 million in bonds to help boost the struggling company and issue up to 20,500 shares of stock.
In spite of how good of a deal getting a MoviePass subscription is, it seems it’s having difficulty making ends meet — and stockholders don’t seem to be gaining much faith in them either, with their stock price declining nearly 89 percent in the past three months.
Are we witnessing the end of MoviePass as we know it, or is this to be expected from a start-up that’s working to shake the industry to its core? Let us know your thoughts down below!