MoviePass Is Having Difficulty, so Use It While You Can
MoviePass never made sense on a financial level , but an independent audit (via Variety ) shows the company may be worse off than we thought. If you’re using the service – or thinking about signing up – you should probably make the most of its too good to be true offer before it’s too late.
MoviePass’s parent company, Helios & Matheson, lost $ 150.8 million in 2017 (up from $ 7.4 million a year earlier), although revenue actually grew slightly. The audit calls this a “growing problem” and questions the ability of MoviePass to continue operating at a loss. On the other hand, the company says it has enough money to survive and expects to make a profit by 2019 .
In the meantime, MoviePass may have found a way to improve its short-term financial results. The company recently announced a new partnership with iHeartRadio , offering free music streaming with a subscription for $ 9.95 per month. The only snag? New subscriptions are also limited to four films per month instead of the previous offer of 30 films per month. (If you’ve already signed up, don’t worry, nothing has changed for your subscription.)
MoviePass did not explain the reason for this change, although it could be directly related to the iHeartRadio partnership. However, it is also possible that the company is trying to stem its financial bleeding a bit. After all, every time someone with a MoviePass subscription sees a movie, the company covers the ticket price and loses money. 30 movies per customer per month add up quickly (even if most people don’t actually watch that many movies). Four films is a lot less money.
Fortunately, this change is not permanent. In a statement to Lifehacker, a public relations official said MoviePass plans to return to its previous offering of 30 films a month, although it is unclear exactly when that might happen.
However, given the company’s current financial health, you might not want to wait long if you are anxious to try MoviePass. And if you are already a paid member, use the service now before it’s too late.