Sat. Oct 1st, 2022

The popular MoviePass subscription service in on the verge of getting delisted from the NASDAQ stock exchange after company witnessed a 60% fell in the value of the stock yesterday to USD 0.80, Helios and Matheson, the holding company for the popular subscription service has to desperately seek for making company survive by undergoing a 1-for-250 reverse split and borrowing an emergency amount of USD 5 million on last Thursday, to keep providing services to its existing customers.

Even though the company took a loan to run the service, many customers of MoviePass found that they were not able to book a ticket for the last weekend box-office opening Mission Impossible: Fallout. MoviePass was one of the few new startups which took place in 2011 but didn’t come to notice to most of the people until last year when Helios and Matheson bought the majority of the stake of MoviePass. They introduced a strategy to provide a disruptive pricing scheme to attract the majority of the customer base so that eventually it would pay off to the company as planned. The pricing is like for less than USD 10 a month the subscriber could watch a movie every day in a month and one movie in a day. With this, the subscriber base for MoviePass jumped from 20,000 to more than one million.

Helios and Matheson Analytics is a big data company and collects data about its subscribers. It doesn’t sell the data to any third parties for marketing or any purpose. It uses it for the purpose of knowing the preference of the subscribers by monitoring its browsing data and movie-going habits.  The main problem lies in the business model of MoviePass, where it would pay full price to the Movie Theaters which was an unsustainable approach and it is most likely that the end is approaching at a very fast pace for the MoviePass. However, the company will leave behind the lasting legacy of a business model; some of the theaters had begun to implement this kind of service in their business model.

By Sara Liard

Sara Liard is a seasoned journalist with 15 years experience as a reporter. While studying journalism at college, Srah wrote her thesis on political corruption at the municipal level. As a contributor to The Truth News, Sarah mostly covers politics.

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