It’s been a tough go of it lately for MoviePass. The movie theater subscription service has been endlessly questioned about the viability of its business model. This came to a head last week when the company temporarily ran out of money, which caused the service to go dark. Now it’s borrowed enough money to keep the lights on (for now), but some new films seem to be unavailable on the service.
Last weekend, subscribers were unable to see Mission: Impossible–Fall Out, which led many customers to tweet angrily at the company. And today, Business Insider reports that MoviePass’s CEO, Mitch Lowe, told employees at an all-hands meeting that other big-name releases, such as Christopher Robin and The Meg, will also not be available to subscribers. This will surely only infuriate customers more. In the report, Business Insider cites a person familiar with the company.
MoviePass’s move is likely an effort to stop hemorrhaging money. Given that it buys all tickets at full price and then gives them to users who pay as little as $10 a month, not offering blockbuster new releases will cut costs, but MoviePass will still have to figure out other ways to make money. Either that, or it may have been too good to be true all this time.
I contacted MoviePass for comment and will update this post if I hear back.