Things are not going well for MoviePass. The service received a backlash in recent months following several announcements to restrict and/or raise the price of its services. Now, after publicising their quarterly profit report, investors in the company want their money back, and movie fans are losing interest.
The company reports a flux of operating loss, from $2.7 million during last year’s summer quarter to an alarming $84 million now. That’s a 2900% increase in just over a year.
These losses come as little surprise when paired with the company’s recent announcements of changes to the service, and vice versa. Last month, MoviePass announced that not only would it be restricting account usability from a movie a day to three a month, but that customers could expect price surges up to around $2 a month.
To many customers, this sounds a lot like paying for more than you get, and many are opting to leave the service. Some found it difficult, however, as a bug was causing an acceptance of new terms and conditions to be read by the servers as a reactivation of canceled subscriptions. This mistake has since been rectified but left many feeling hostile towards the service.
Customers aren’t the only ones to feel lied to. To investors, these unattractive figures spell more than desperation. Helios and Matherson, MoviePass’ parent company, is being served a public class action lawsuit by one of its investors on the behalf of all. The suit has been made public and can be read in full here.
This is a frightening concept for H&M, considering that the worth of the company in money and assets is less than the accumulated losses that MoviePass reported this quarter. As MoviePass continues to struggle, a Reddit mega-thread shows countless customers losing access to tickets and facing glitches with little to no explanation. Only time will tell, but many are anticipating the death of the once-popular service.