It sounded too good to be true — $10 a month for nearly unlimited access to your local movie theater. Well, for MoviePass and its millions of loyal users, it turns out it was too good to be true.
The movie subscription service is seemingly at the end of its life — but who is really surprised? With a monthly cost that equals less than the price of a standard movie ticket, MoviePass' business model is hardly sustainable. Not even Elon Musk has hopes for the company. When asked by a distraught user if he could fix it, Elon simply responded, "No."
So, what TF happened to MoviePass?
Well, in a nutshell, it ran out of money. This past May, MoviePass burned through $45 million and is expected to lose another $45 million in June, according to TheNextWeb. The company also secured an emergency $5 million loan this week — but it's not looking good.
Without money, MoviePass has no way to issue a credit to the vendor (i.e. the movie theater), which means no movie tickets for anyone.