MoviePass troubles continue with a source claiming the company will soon stop offering tickets to major blockbuster movies. The leak follows the company’s outage last week, which an SEC document revealed to be the result of a lack of money. MoviePass took out an emergency $5 million loan, but still struggled to return to normal. Behind closed doors, at least according to the leakster, the company is scrambling to survive.
MoviePass won’t offer its subscribers tickets to the upcoming major releases The Meg and Christopher Robin, according to Business Insider, which says it got information from someone who is familiar with the matter. Company CEO Mitch Lowe reportedly had an all-hands meeting with employees today that detailed the change.
The source went on to claim that Lowe indicated MoviePass won’t be offering tickets for other future blockbusters, either, at least for a period of time. The report follows complaints from subscribers alleging that they were unable to get tickets for some major titles, such as the new Mission Impossible movie.
The business move, which the company hasn’t explicitly confirmed, appears to be a desperate measure to save money while it figures out a way to survive. The company recently introduced a change to how it works, adding Peak Pricing to help address the cost of big new releases. Whether subscribers will stick with the company if it blocks major releases is unclear.
While it would be ideal for MoviePass if its customers stuck to cheaper movies, such as dollar theaters, doing so would eliminate the appeal for subscribers. At about $10/month, MoviePass is viewed as an incredibly cheap way to see movies visitors may otherwise not pay for, but it has also been criticized as very unsustainable.
SOURCE: Business Insider