MoviePass
| Company type | Private (formerly) |
|---|---|
| Industry | Subscription service, Entertainment |
| Founded | 2011 |
| Founder | Stacy Spikes, Hamet Watt |
| Defunct | September 2019 (ceased operations), January 2020 (discontinued) |
| Fate | Ceased operations; relaunched in 2022 under original co-founder |
| Headquarters | United States , United States |
Area served | United States |
Key people | Stacy Spikes (co-founder, current owner), Mitch Lowe (former CEO), Ted Farnsworth (former CEO and chairman) |
| Products | Movie ticket subscription service |
| Owner | Stacy Spikes (since November 2021) |
| Parent | Helios and Matheson Analytics (2017–2019) |
MoviePass, Inc. is a U.S.-based subscription service for movie tickets, initially established by co-founder Stacy Spikes. Introduced in 2011, the platform enabled members to buy one movie ticket daily through a mobile application that linked purchases to a prepaid debit card, all for a fixed monthly fee.
In 2017, Helios and Matheson Analytics (HMNY) took control of MoviePass and significantly reduced the subscription cost to $9.95 monthly. This pricing adjustment spurred rapid subscriber growth, surpassing three million users by mid-2018. Nevertheless, financial instability soon plagued the company, culminating in its closure in September 2019. HMNY subsequently filed for Chapter 7 bankruptcy and discontinued operations by January 2020.
On November 10, 2021, co-founder Stacy Spikes regained ownership following a ruling by a New York bankruptcy court. After being removed after the 2018 acquisition, Spikes revealed intentions to revive MoviePass in 2022 with the goal of restoring its market position and fostering business expansion.
Initial launch
MoviePass was created in 2011 by entrepreneurs Stacy Spikes and Hamet Watt, with financial backing from investors such as True Ventures and AOL Ventures. The company debuted in beta form in June 2011 within San Francisco. Early efforts encountered opposition from cinema chains, resulting in a brief suspension. At first, MoviePass utilized a voucher-based system, collaborating with Hollywood Movie Money starting August 2011 to access its theater network.
Due to customer dissatisfaction, this voucher model was replaced in October 2012 by a mobile app paired with a prepaid card accepted at cinemas that took major credit cards; however, some chains like AMC Theatres openly distanced themselves from the service.
In June 2016, MoviePass appointed Mitch Lowe, previously an executive at Netflix and Redbox, as CEO. Lowe planned to introduce multiple pricing tiers ranging from an entry-level $20 monthly plan to a premium $100 unlimited package including 3D screenings. Certain plans—such as $50 for six movies or $99 unlimited—were criticized as measures intended to discourage heavy users who were unprofitable.
By July 2016, MoviePass launched tiered subscription options based on two, three, or unlimited movies per month with prices varying by region (for example, $15–$21 for two films). Unlimited plans ranged between $40 and $50 monthly and lifted earlier daily usage limits. Lowe targeted these offerings toward less frequent moviegoers. By December 2016, the subscriber base reached 20,000.
In December 2016, Studio Movie Grill acquired an equity stake in MoviePass and partnered to incorporate food ordering capabilities into the MoviePass app, broadening its product and service offerings.
Subsidiary under Helios and Matheson
In August 2017, Helios and Matheson purchased a controlling interest in MoviePass and reduced the unlimited plan price to $9.95 monthly to encourage increased cinema attendance through affordability. CEO Ted Farnsworth likened MoviePass’s business approach to that of Facebook and Google, emphasizing userbase expansion to utilize viewing data for targeted advertising purposes. This price reduction triggered rapid subscriber growth: reaching 400,000 by September 2017; 600,000 by October; one million by December; and two million by February 2018. By June 2018, paid memberships exceeded three million.
Between December 2017 and February 2018, Helios advanced $55 million to MoviePass through debt conversion into equity, raising its ownership stake from 62.4% to 91.8%, facilitating a board-driven merger. In January 2018 at the Sundance Film Festival, MoviePass introduced MoviePass Ventures—a subsidiary designed to co-invest in films alongside traditional distributors.
Subscription fees were further lowered to $7.95 per month with annual prepayment in February 2018 and then to $6.95 in March. In April, Helios acquired Moviefone from Verizon’s Oath Inc., granting Verizon a share of MoviePass stock. That same month saw the replacement of the unlimited plan for new subscribers with a three-movie-per-month option bundled with a complimentary three-month iHeartRadio All-Access trial. CEO Lowe noted ongoing experimentation with pricing structures and restrictions on multiple ticket purchases for certain films. Two weeks later, the unlimited plan was reinstated alongside the limited option at $7.95 monthly; Lowe reaffirmed dedication to maintaining the unlimited offering.
This period reflected aggressive growth tactics through pricing adjustments, strategic acquisitions, and ventures into film financing—demonstrating leadership focused on expanding market share while diversifying revenue channels.
Financial challenges
In May 2018, MoviePass reported expenses surpassing its revenue by $40 million, with an anticipated shortfall of $45 million projected for June. To counter the competitive pressure from AMC Stubs A-List, MoviePass implemented surge pricing ranging from $2 to $6 during peak periods and initiated a $164 million bond offering that summer. Subscribers were allowed to bypass one surge fee per month, and the company expanded its revenue streams by selling branded merchandise.
On July 2, Helios and Matheson Analytics submitted filings to raise $1.2 billion through debt and equity instruments aimed at sustaining MoviePass’s financial stability. Following a service disruption on July 26, the company secured a $5 million loan to maintain operations amid growing skepticism about its future. Subsequently, MoviePass restricted access to major releases such as Mission: Impossible – Fallout and announced it would no longer subsidize upcoming blockbusters like The Meg, instead prioritizing smaller films subject to peak pricing.
By August 2018, MoviePass abandoned plans to increase its monthly subscription fee from $9.95 to $14.95 but imposed a three-ticket monthly limit on free movies; additional viewings were discounted by $5. The service also narrowed daily movie selections to six titles, encompassing both major studio productions and independent films.
In early August, Helios and Matheson expanded their holdings by acquiring assets from Emmett Furla Oasis Films for the MoviePass Films division. On August 24, MoviePass discontinued its annual unlimited subscription plan, transitioning all users to the limited monthly option; subscribers who canceled before August 31 were eligible for prorated refunds. By October, cancellations had exceeded one million users, and by April 2019, the paying subscriber count had plummeted over 90% from its peak, reaching approximately 225,000.
Between late 2018 and early 2019, multiple class action lawsuits were initiated accusing the company of misleading customers through bait-and-switch tactics and failure to honor promised movie access due to blackouts of popular films. On September 14, 2019, MoviePass announced it would cease operations after unsuccessful attempts at recapitalization. CEO and chairman Ted Farnsworth resigned three days later while expressing interest in acquiring MoviePass assets including Moviefone and affiliated entities.
On November 10, 2021, a bankruptcy court approved the sale of MoviePass back to co-founder Stacy Spikes, who revealed intentions to potentially relaunch the service.
2022 relaunch
In August 2022, co-founder Stacy Spikes reacquired MoviePass and unveiled plans for a relaunch featuring a tiered pricing structure offering $10, $20, and $30 plans that vary by region. The company introduced a waitlist for a limited beta rollout with phased regional launches based on user engagement.
By September 2022, MoviePass commenced its beta relaunch in Chicago, Dallas, and Kansas City on Labor Day weekend, permitting subscribers to view up to five movies per month. Prior to this launch, more than 775,000 individuals had joined the waitlist.
In January 2023, MoviePass secured seed funding led by Animoca Brands for an undisclosed amount aimed at accelerating the beta rollout and advancing its Web3 initiatives. These efforts include virtual reality cinema experiences and technology-driven strategies to boost theater attendance. As of January 2023, the beta program was active in nine U.S. markets: Atlanta, Chicago, Dallas, Houston, Indianapolis, Kansas City, Oklahoma City, and Tampa Bay.
Accolades
MoviePass earned a spot among the "25 Most Disruptive Apps of 2012" and was highlighted in Business Insider as part of "The Best of Everything in 2012." The company’s 2017 transition to a new business strategy successfully drew in a large customer base, reaching 2 million subscribers by February 2018. During that same month, MoviePass unveiled MoviePass Ventures at the Sundance Film Festival, establishing a division dedicated to film acquisition and distribution.
Operation
Subscribers of MoviePass were provided with a branded prepaid debit card. Through the MoviePass mobile app, users could check in at participating theaters, choose a movie and showtime within a 30-minute window, after which the card was credited with sufficient funds for purchasing one ticket. The service covered ticket expenses directly with cinemas. MoviePass was accepted at approximately 91% of theaters across the United States, with some venues supporting electronic ticketing. Studio Movie Grill invested in MoviePass and trialed app capabilities such as food ordering.
Initially, MoviePass offered multiple pricing options but shifted in August 2017 to a $9.95 monthly subscription allowing one movie per day. This adjustment followed an acquisition of majority ownership by an analytics company aiming to broaden market penetration and collect viewer data.
Restrictions included exclusion of specialty formats like 3D and IMAX, no advance ticket buying, and single-user limitations. Starting April 2018, subscribers were permitted to watch each film only once. By July 2018, certain screenings introduced variable fees based on demand.
Criticism and controversy
From the outset, major cinema chains resisted the MoviePass model; its pilot program involving 21 theaters in San Francisco was discontinued after AMC Theatres and Landmark Theatres objected to their inclusion without permission. Founder Stacy Spikes had envisioned a platform enabling studios to connect directly with subscribers to increase concession sales and attendance, but studios and theaters showed minimal enthusiasm.
Following the introduction of the revised pricing plan in August 2017, AMC publicly contemplated withdrawing support, expressing concerns that MoviePass’s strategy was financially unsound and risked degrading customer experience by pressuring price reductions. MoviePass’s revenue model depended on subscribers paying for infrequent use, akin to gym memberships. On March 13, 2019, Khalid Itum, executive vice president responsible for daily operations since late 2018, exited the company.
In an effort to manage expenses during periods of high usage, CEO Mitch Lowe implemented restrictions that curtailed user benefits. These included mandatory password resets affecting 75,000 active users under security pretenses, causing service interruptions; conducting "random" audits requiring photo submission of ticket stubs that disproportionately targeted frequent users and frequently resulted in account suspensions; and covertly disabling accounts exceeding three movies per month. Company leadership feared negative consumer reactions and regulatory investigation regarding these practices. In 2021, the Federal Trade Commission (FTC) filed a complaint about these deceptive actions, which MoviePass ultimately settled.
On August 20, 2019, cybersecurity firm SpiderSilk notified MoviePass of a data breach compromising sensitive user information, including credit card details belonging to tens of thousands of customers.
MoviePass Ventures
On January 19, 2018, during the Sundance Film Festival, MoviePass introduced its subsidiary, MoviePass Ventures, aimed at jointly acquiring films alongside established distributors. Lowe explained that the initiative sought to "deliver exceptional films to the big screen for our subscribers" while capitalizing on their demonstrated ability to enhance box office results during theatrical releases.
The inaugural acquisition by MoviePass Ventures, in collaboration with The Orchard, was Bart Layton's American Animals, released on June 1, 2018. Their second title, Gotti, featuring John Travolta, premiered on June 15, 2018. Industry insiders expressed skepticism about MoviePass Ventures' strategy, highlighting that unlike conventional studios which covertly purchase tickets to inflate opening numbers, MoviePass transparently bought tickets for its own films. According to data from MoviePass, their service contributed between 25% and 35% of ticket sales for American Animals during its opening weekend and approximately 40% for Gotti.
MoviePass Venture films
The film Gotti showed significant divergence between critic ratings and audience scores on Rotten Tomatoes, with numerous favorable user reviews originating from newly created accounts or profiles that had only reviewed American Animals. This pattern raised suspicions regarding possible manipulation of audience feedback to favor the service.
| Title | Release date | Director | Production companies | Distributor |
|---|---|---|---|---|
| American Animals | June 1, 2018 | Bart Layton |
|
co-distributed with The Orchard |
| Gotti | June 15, 2018 | Kevin Connolly |
|
co-distributed with Vertical Entertainment |
MoviePass Films
In May 2018, Helios and Matheson Analytics—the parent company of MoviePass—secured an option to acquire assets from Emmett/Furla Oasis and enlist its leadership's expertise to establish MoviePass Films, a subsidiary in which Helios held a 51% stake. The acquisition was finalized by August 2018. The debut production was 10 Minutes Gone, starring Bruce Willis, marking the start of a three-picture agreement with Willis. Subsequently, in September 2018, MoviePass Films obtained equity interests and co-distribution rights for two forthcoming titles from Neon.
In March 2019, The Boies/Schiller Film Group initiated legal action against Emmett/Furla Oasis Films for allegedly violating an agreement related to financing and producing Escape Plan sequels featuring Sylvester Stallone, citing withheld funding rights and unpaid executive fees.
On October 14, 2019, Oasis Ventures Entertainment filed a lawsuit against MoviePass Films accusing it of film misappropriation and unauthorized contractual arrangements with Helios and Matheson.
Following the closure of MoviePass in 2020, MoviePass Films remained the last operating entity using the brand name. Its final release was Boss Level in 2021. After MoviePass Films ceased operations, the film American Traitor: The Trial of Axis Sally was transferred to Vertical Entertainment and Redbox Entertainment.
MoviePass Films
| Title | Release date | Director | Production companies | Distributor |
|---|---|---|---|---|
| A Vigilante | March 10, 2018 | Sarah Daggar-Nickson |
|
Saban Films |
| Escape Plan: The Extractors | July 2, 2019 | John Herzfeld |
|
Lionsgate/Summit Entertainment/Grindstone Entertainment Group (US)
|
| 10 Minutes Gone | September 27, 2019 | Brian A. Miller |
|
Lionsgate/Grindstone Entertainment Group |
| Boss Level | March 5, 2021 | Joe Carnahan |
|
Hulu |
Acquired films
| Title | Release date | Director | Notes |
|---|---|---|---|
| Monsters and Men | September 28, 2018 | Reinaldo Marcus Green | Equity interests and joint release with Neon |
| Border | May 10, 2018 | Ali Abbasi | Equity interests and shared release with TriArt Film |
| Villains | September 20, 2019 | Dan Berk, Robert Olsen | Equity interests and co-release alongside Gunpowder & Sky and Bron Studios |
| The Reckoning | August 20, 2020 | Neil Marshall | Equity interests and joint release with Highland Film Group |