LOS ANGELES (CBSLA) – The struggling subscription-based movie ticket service MoviePass, which a few years ago appeared to have brought on a major shift in the theater industry, is shutting down.
The company announced on its website Friday that it will be shuttering its business Saturday.
"Over the past several months, MoviePass worked hard to relaunch its groundbreaking subscription service and recapitalize the company," CEO Mitch Lowe said in a statement. "While we were able to relaunch the service for some of our subscribers with an improved technology platform, our efforts to recapitalize the company have not been successful to date. As a result, it pains us to inform you that effective at 8 a.m. E.T. on September 14, 2019, we must interrupt service for all current MoviePass subscribers."
MoviePass took the industry by storm in 2017, at a time when theaters were grappling with declining attendance, the rise of streaming services such as Netflix, and a struggling film industry.
At the height of its popularity, MoviePass offered subscribers the chance to see one movie a day at most theaters for about $10 a month.
However, as its subscriber base exploded into the hundreds of thousands, it began to struggle financially and then butted heads with theater chains like Regal and AMC, both of whom have since launched their own competing subscription services.
Its parent company, Helios and Matheson Analytics, was forced to slash MoviePass prices as it saw its stock value plummet.
In his statement Lowe said he is "unable to predict if or when the MoviePass service will continue."
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