MoviePass is a company which offers customers to watch movies once a day in theaters for free for just a monthly fee.
This is a great deal for people who like to go to the movies a lot, especially after MoviePass's parent company, Helios and Matheson, voted to decrease the monthly fee to $9.95 a month.
Essentially, even for moviegoers who see just one movie a month, they still save money opting for MoviePass rather than just paying for the movie normally. This has created problems for MoviePass and it's parent company, because of serious speculation that they are falling into debt.
With this, the MoviePass stock has fallen all the way from $30 to 8 cents, in danger of falling off NASDAQ, one of the US's stock exchanges. The parent company had to vote to reverse split the stock 250-to-1 to avoid this, meaning that the stock price was multiplied by 250 and that shareholders' stock numbers were divided by 250.
Now, to create a more sustainable MoviePass subscription, they have implemented a system called peak pricing, meaning that if you check in for a movie relatively close to its showtime, you might have to pay an additional 3-5 dollar, which is present at most movie theaters and even for movies that have been in theaters for a while.
So, MoviePass is banking that most users will watch 0-1 movies a month, which means that users would have most likely paid more through MoviePass a month than through paying for the movie normally. However, for avid moviegoers, or people who watch even just 2 movies a month, MoviePass is still a good option to save a few bucks on your trips to the movies.
- MoviePass is no longer too good to be true - The Verge ›
- The spectacular rise and fall of MoviePass - MarketWatch ›
- MoviePass is running out of money and needs to raise $1.2 billion ›
- How 2 Million People Loved MoviePass Nearly to Death - Bloomberg ›
- MoviePass is no longer too good to be true - The Verge ›
- MoviePass | Watch New Movies in Theaters ›
- Everything MoviePass does just makes things worse ›
- MoviePass - Apps on Google Play ›
- MoviePass (@MoviePass) | Twitter ›