MoviePass is getting spun off as its own separate company

Photo by Vjeran Pavic / The Verge

MoviePass parent company Helios and Matheson has announced a preliminary plan to spin off the struggling movie subscription service into its own company.

“Since we acquired control of MoviePass in December 2017, HMNY largely has become synonymous with MoviePass in the public’s eye, leading us to believe that our shareholders and the market perception of HMNY might benefit from separating our movie-related assets from the rest of our company,” Helios and Matheson CEO Ted Farnsworth said in a press release.

The plan would create a new holding company called MoviePass Entertainment Holdings, which would contain shares of MoviePass, MoviePass Films (the company’s film production arm), MoviePass Ventures (which looks to co-acquire and distribute completed films), and Moviefone, which still exists.

To say MoviePass has been struggling lately would be an understatement, and it’s easy to see why Helios and Matheson would want to spin it off into its own company to distance MoviePass from its brand. Earlier this year, MoviePass temporarily went down because it ran out of money, and its most recent quarterly earnings from August show that Helios and Matheson has been burning through cash trying to keep the service afloat. And the company has only been able to do this by constantly changing rules of its service to limit films and deter subscribers from, well, actually seeing movies.

Last week, news broke that Helios and Matheson was under investigation by the New York attorney general’s office over fraud concerns, which allege that the company misled investors.

Comments

You know what this means?

HUGE PRICE HIKES INCOMING!!!

I’m surprised this hasn’t happened sooner.

So… it ends back where it was before it was bought by a vulture capitalist? This is actually good news. It was doing fine before.

MoviePass was always losing money even before being bought. It just wasn’t losing buttloads of money since the prices varied depending on where you lived (it could be as low as $15/month to as high as $99/month), and they only had around 20,000 members before the price drop to $9.99 a month.

Awesome news! Are they hiring?!

MoviePass, you will be missed. If 2016 was the summer of Pokemon Go, the fall 2017 through spring 2018 was the year of MoviePass. I saw so many movies I would not have paid for, and loved spending so much time in the movie theater. I have not seen many movies this summer, so I do not know if I will move to a competitor, but I loved MoviePass while it was in it’s prime.

One of my favorite parts was that everyone knew it was a temporary thing and that it was too good to be true. Everyone understood it was only a temporary thing, so I went out of my way to use it as much as possible before it crashed.

*its prime

It’s always fun to spend a bunch of rich idiots’ money. I guess they thought they’d eventually have enough leverage against the movie chains to make it work, but I really don’t see how they believed that. I think we’ll find out that either someone at HMNY was running a scam or they were just absolutely stupid.

If you live near an AMC, their "AMC Stubs A-List" subscription is nice substitute. $19.99 per month for up to 3 movies per week. The theater near me has recliner seats, and I go enough to justify the $19.99 price.

This could help repair H&M’s stock & could boost the interest in MoviePass stock. Looks like a win/win.

Just go out of business already.

Seriously just let Movie Pass die.

The business model still won’t work because MoviePass resells tickets for less than they buy them from theaters. And theaters won’t cut them a deal because they can do their own passes. Game over man.

Mind over matter. Head over heals. Hand over fist. Game over man.

Commas are important.

It was good while it lasted. I just cancelled my subscription Sunday.

Starlight and Cinépolis just disappeared from E-Ticketing theater list.

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