In a whirlwind summer for the company, MoviePass claims significant growth.
In the last quarter, MoviePass, the subscription movie-going service, lost over $126 million, a major blow for such a young company. In fact, the company, which celebrated its one-year anniversary of a business relationship with Helios and Matheson this week, admitted it was quickly going through $73 million a month and only had about $15.5 million in cash. Since the beginning of 2018, the company has lost around $219 million.
Helios and Matheson purchased MoviePass a year ago, taking the popular service to the public sharing market. Those hopes and dreams of market success have been squashed in recent weeks, with its Wall Street identity plummeting on the back of several corporate changes both in-front-of the public and behind-the-scenes. Recently, its shares fell 15% to just 4 cents.
Wall Street isn't the only major issue as two federal class-action complaints were filed this week against Helios and Matheson for MoviePass making "false" or "misleading" statements.
Despite the grim smoke in the air, a report released by MoviePass says the service has been on a rise and fall since cutting its monthly price to just $9.95 over the past year. MoviePass now has over 3 million subscribers, up from just 15,000 when Helios first purchased it last summer.
The growth is staggering and quite amazing, but with a company that's actively losing cash left and right, that growth doesn't equate to complete success. Over the past few weeks, MoviePass has crafted major changes, hoping to appease its massive customer base while saving money in the process. Users will now only be able to see three films a month, whereas before they could see a new film each day.
For its subscribers, perhaps seeing the company act positively is refreshing, or it's a sign that MoviePass truly is in over its head.