MoviePass Could Lose Nearly Half of Its Subscribers, Survey Says
More than 50 percent of the MoviePass cancelations have come in the last month in the wake of unpopular service changes
Trey Williams | August 28, 2018 @ 2:10 PM
Last Updated: August 28, 2018 @ 5:49 PM
A view of signage at the MoviePass House Park City during Sundance 2018 on January 21, 2018 in Park City, Utah. (Photo by Daniel Boczarski/Getty Images for MoviePass)
MoviePass subscribers — the ones who are still hanging on — have all but lost all confidence and faith in the monthly subscription movie-going service.
According to a new study conducted by the global entertainment strategy and polling firm National Research Group (NRG), 47 percent of MoviePass subscribers said they are likely to cancel their membership following recent changes the company made in an effort to stabilize the business.
It’s been a fairly fast decline for MoviePass. In March, NRG conducted a survey in which 62 percent of subscribers said they planned to remain a subscriber “for a long time.” But that number has dropped to 37 percent in August.
MoviePass, and its parent company Helios & Matheson Analytics, has suffered a tumultuous, often depressing summer. In the last three months alone Helios & Matheson’s stock has declined 99 percent as the company has pulled out nearly all the stops to try to buoy a sinking MoviePass.
Earlier this month, MoviePass settled on a new plan for subscribers, making tweaks to its business and service, after a run of back-and-forth announcements that saw the company promise at one point to raise the monthly price to $15. That didn’t ultimately happen.
But the $10-a-month service, which has helped to upend the movie-going business by promising the ability to see a movie a day, is a shadow of its former self. The company has placed necessary limits on the amount of times subscribers can see a movie, as well as the movies that are available to users through various theatrical partners.
According to NRG, more than half of MoviePass’ current subscribers point to the restrictions the company has adopted as the most frustrating thing MoviePass has done. Limiting the number of movies they could see was also a top frustration and reason for cancelling the service.
And 50 percent of the people who have jumped ship have done so in the last month, when the majority of the MoviePass’ changes were announced.
“MoviePass’ innovation was offering the freedom and flexibility to see any movie, at any time, at almost any theater, for a low price,” said NRG CEO Jon Penn in a statement. “By constantly changing the terms of service – limiting which films subscribers could see and when they could see them – MoviePass has eroded brand trust and undermined their leadership position.”
NRG’s survey looked at 1,558 moviegoers ages 18 to 74, including 424 current MoviePass subscribers and 100 subscribers who had recently cancelled.
For MoviePass, however, the changes were necessary if it wanted to stop bleeding money. In its most recent quarterly filing with the Securities and Exchange Commission, Helios & Matheson said it had a net loss of $63.4 million for the three months ending June 30.
The company also said it had roughly $15 million in cash on hand at the time.
Since acquiring MoviePass last August, Helios & Matheson has poured tens of millions of dollars into the company, as it fueled subscriber growth. MoviePass managed to sign up roughly 3 million users in less than a year after initially overhauling its business in August 2017.
The company’s woes have also put its stock in a precarious state. Shares of Helios & Matheson close at 2 cents on Tuesday. The company has already received a letter from the Nasdaq, warning that with shares trading below $1 the company is in danger of being de-listed, one of the first warning signs of bankruptcy for a public company.
This is the second time Helios & Matheson has found itself here. The company previously accomplished a remarkable 1-to-250 reverse stock split to prevent the company from being de-listed from the Nasdaq. The plan helped briefly boost Helios & Matheson shares before they fell back below $1 one week later. Now they have until Dec. 18 to boost its shares back above $1.
Users fell in love with MoviePass’ service almost immediately, but the company’s trying times have put a dint in customer satisfaction. According to NRG MoviePass customer satisfaction dropped to 48 percent from 83 percent just five months ago. The firm said that trails all major entertainment subscription services.
That’s one arena MoviePass can for sure hang its hat. The company lit a fire under a number of exhibitors, namely AMC, to adopt popular subscription models for going to the movies.
MoviePass’ recent difficulties aside, there is plenty of appetite for movie ticket subscription services. NRG found that 39 percent of moviegoers would have “definite interest” in a subscription-based plan. That number ballooned to 84 percent when including people who were “probably interested.”
“There remains immense opportunity and moviegoer appetite for innovation in movie ticket buying,” Penn said in a statement. “Future services that offer value, flexibility and convenience – in an economically viable way – will help drive moviegoing to new heights.”
11 Best Back-to-School Movies, From 'Animal House' to 'Mean Girls' (Photos)
There are hundreds of movies about going to school and growing up, but only a handful specifically capture the feeling of summer ending, entering into a new grade, meeting new people and starting fresh. Yes, it's the waning weeks of August, and that means it's time for back-to-school shopping, new school butterflies and making the most of the last few days you'll get outdoors. And though you won't find teen classics like "Ferris Bueller's Day Off," "The Breakfast Club" or others on this list, you will find some great movies meant to get you into the back-to-school spirit.
"Animal House" (1978)
Look, a film with a toga party, countless pranks and an entire frat house on Double Secret Probation does not sound like the best influence for anyone hoping to head off to college and succeed, but "Animal House" actually has a lot of wisdom to impart. The ultimate snobs vs. slobs comedy teaches you to find where you belong. In those opening scenes where Flounder and Pinto first step into the Delta house, they get drinks spilled on them, the house is a mess and I think someone just barged in on a motorcycle, but you know instantly, this is the place to be.
Universal
"Fast Times at Ridgemont High" (1982)
One of the most quintessential teen movies, Amy Heckerling's "Fast Times at Ridgemont High," set the bar for raunchy teen comedies with heart and depth, as well as many of the high school character tropes we've come to know.
Universal
"Back to School" (1986)
Hey, look who's getting some class ... in class! You're alright. "Back to School" is no "Caddyshack," but it's Rodney Dangerfield doing what he does best, throwing zingers, double entendres and wads of cash at you a mile a minute.
Orion Pictures
"Matilda" (1996)
Based on Roald Dahl's novel, the charming "Matilda" as directed by Danny DeVito still has a winning attitude about going to school and shining despite monstrous parents and principals who would rather see you fail. This children's classic has whimsy and wisdom for days.
TriStar Films
"Harry Potter and the Sorcerer's Stone" (2001)
I'm guessing your school doesn't have a sorting hat, quidditch or transfiguration classes, but the first Harry Potter film is a childlike wonder that highlights Hogwarts at its best. It teaches kids about the jitters of discovering not just a new place or strange new people but tapping into what makes you special.
Warner Bros.
"Legally Blonde" (2001)
"What, like it's hard?" The charm of "Legally Blonde" lies in Reese Witherspoon's spirited confidence, goodness and optimism all channeled into the idea that being confident and professional shouldn't come at the expense of being yourself.
MGM
"Mean Girls" (2004)
"Mean Girls" opens with Lindsay Lohan's Cady looking up at her nurturing parents. They ask if she has money for her lunch and if she remembers her phone number. The joke is, she's a teenager only going to public school for the first time. It's funny because going back to school is a hard experience no matter your age.
Paramount Pictures
"Friday Night Lights" (2004)
While people adore the TV show, Peter Berg's film "Friday Night Lights" milks the high intensity and drama from starting a new football season and being the new coach in town. From the beginning of the school year, you feel the pressure on each of these kids to succeed on the gridiron and claim their future, which is exactly what going back to school is all about.
Universal
"The Perks of Being a Wallflower" (2012)
Stephen Chbosky's filmed adaptation of his own novel is one of those sweet, underrated gems with a great sense of nostalgia and a modern sensibility. Some of the film's best moments feature Charlie (Logan Lerman) in his first few days of school, such as realizing your old friend from junior high has now grown distant, or in looking for the courage to find his feet on the dance floor at Homecoming.
Summit Entertainment
"21 Jump Street" (2012)
No one would've guessed that a comedy remake of a campy '80s show about cops going undercover in a high school could work. But the zany, screwball chemistry of Jonah Hill and Channing Tatum going back to school and trying to fit into cliques taught us all a lesson.
Columbia Pictures Corporation
"Everybody Wants Some!!" (2016)
While Richard Linklater's "Dazed and Confused" is set on the last day of school, his spiritual sequel "Everybody Wants Some!!" is set in the few days before classes begin. In 1980, a Texas college baseball team lives together in a house ahead of the start of the fall season. It's a film about masculinity, fading glory days and discovering a new identity at a new chapter in your life.
Annapurna Pictures
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Get back into the school spirit with films like “Friday Night Lights,” “Fast Times at Ridgemont High” and “Legally Blonde”
There are hundreds of movies about going to school and growing up, but only a handful specifically capture the feeling of summer ending, entering into a new grade, meeting new people and starting fresh. Yes, it's the waning weeks of August, and that means it's time for back-to-school shopping, new school butterflies and making the most of the last few days you'll get outdoors. And though you won't find teen classics like "Ferris Bueller's Day Off," "The Breakfast Club" or others on this list, you will find some great movies meant to get you into the back-to-school spirit.