MoviePass

About MoviePass

MoviePass filed for bankruptcy on January 28, 2020. The subscription movie ticket service had offered one movie per day for 9.95 per month, an unsustainable price. CEO Mitch Lowe admitted the business model assumed non usage. Subscribers who watched movies frequently were throttled. The stock price fell from 32 to less than 1 cent. CEO Ted Farnsworth was charged with securities fraud in 2023. The SEC alleged that HMNY, MoviePass parent, falsely claimed it could monetize user data. The company ran out of cash and had to borrow repeatedly. At peak, MoviePass had 3 million subscribers. The case illustrated the danger of offering services below cost in pursuit of growth. MoviePass was revived in 2023 by co founder Stacy Spikes with a sustainable pricing model.