As shocking as it may seem (not really), MoviePass is losing a lot of money every month. But according to a new report, the parent company, Helios and Matheson, say they have found a way to lose less money per month.
Business Insider is reporting that Helios and Matheson released some more financial data about their movie theater subscription service, MoviePass, and the numbers are pretty shocking. According to the report, MoviePass has about $43.4 million dollars in the bank as of April 30. However, the subscription service has been losing an average of $21.7 million per month since September 2017. Now, I can’t pretend to be a business expert, but that doesn’t sound too good, in regards to the company’s longevity.
However, Helios and Matheson are now saying that since they’re tweaked the service a little, they’ve seen their deficits go down approximately 35%. So, what has turned the tide ever so slightly?
At the end of last month, MoviePass updated their terms and conditions to add some new limits to their service. Specifically, the subscription service won’t allow its customers to see the same movie more than once. And they also are becoming stricter about people sharing their subscriptions. This reduction of customer benefits has accounted for the 35% savings.
READ MORE: Studio Executive Calls MoviePass A “Cancer On The Industry”
Now, it doesn’t take a financial expert to understand that a 35% reduction, while significant, is hardly going to mean that MoviePass is profitable. They’re still losing tons of money, albeit a little slower than usual. As we’ve been reporting over the last couple months, the business side of MoviePass has been struggling.
Recently, an independent auditor said there’s “substantial doubt” about the longevity of the subscription service. And just last week, MoviePass found itself in hot water after seemingly deceiving potential customers by removing their movie-a-day package for a less-beneficial 4-movies-a-month deal, before reverting back to its original plan a week later.
Of course, the depleting money in the bank isn’t a concern for the company either, apparently. Executives for MoviePass have gloated about having a seemingly endless amount of credit being offered. So, the end isn’t near for MoviePass, yet. However, the subscription service definitely could use some good news.
