MoviePass and parent company Helios and Matheson Analytics have finally called it quits, filing for chapter 7 bankruptcy recently. Revealed in the Jan. 28 filing, this step will allow for the liquidation of MoviePass’s holdings, as well as those of its parent and affiliate companies.
The news does not come as shock considering the service officially shut down back in September, following its demise due to what many considered an unsustainable business model. MoviePass formerly allowed audiences unlimited movie screenings for a flat $9.95 monthly fee, under chairman Ted Farnsworth and CEO Mitch Lowe. In exchange, MoviePass would collect data from its users about their demographics and movie watching habits, in an attempt to sell the information to big data conglomerates.
Theater chains notably objected the service from its humble beginnings in 2011, leading to many creating subscription services of their own, such as AMC Stubs ($20-24 per month) and Cinemark’s Movie Club ($10 per month). Distributors plans to compete with MoviePass ended up proving successful, and in combination with the company’s increasingly suspicious practices, effectively shut down the company.
The chapter 7 bankruptcy announcement signals that neither MoviePass or parent company Helios and Matheson Analytics has a viable plan to continue business, and “after considering strategic alternatives,” according to the SEC filing, both will shut down.
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