Yahoo News What happened to MoviePass? New HBO doc details what went wrong
HBO’s new documentary “MoviePass, MovieCrash,” which is now streaming on Max, delves into the rise and fall of the subscription service that once sought to revolutionize going to the movies.
The stand-alone doc provides an in-depth look at what led to the collapse. Here’s everything you need to know about the story and the film:
How did MoviePass become so popular?
The company became a sensation in 2017 by offering fans daily movie tickets for a flat fee of $9.95 per month.
This attractive deal led to a surge in subscriptions and a significant increase in the company’s stock price, but the exchange would ultimately prove too good to be sustainable.
What went wrong with MoviePass?
Suffering losses of around $150 million in 2017 alone, MoviePass execs decided to shut it down in 2019.
The documentary sheds light on the mismanagement and strategic errors from executives that contributed to the downfall.
“There’s a story under the story,” Stacy Spikes, who co-founded the company in 2011, told Variety.
Spikes raised concerns about the unsustainable pricing model introduced by CEO Mitch Lowe but was eventually ousted from the company along with his co-founder Hamet Watt.
Why were the founders forced out?
Spikes and Watt, who are both Black, were removed from their roles in 2017 after repeatedly raising alarm over the pricing strategy.
The new leadership’s approach was similar to “learning how to build the plane in mid-flight and changing it from a crop duster to a 747,” Spikes said.
He also expressed disappointment with the fact that their departure led to the formation of an all-white executive board.
Who is featured in the documentary?
“MoviePass, MovieCrash” features interviews with both co-founders, as well as investors and former employees.
Director Muta’Ali was even able to secure an interview with Mitch Lowe, who was later indicted on securities fraud charges for deceiving MoviePass investors.
Where is MoviePass now?
Spikes brought MoviePass out of bankruptcy in 2021 and officially relaunched it in 2022. The company recorded its first profitable year in 2023, with a revamped business model that is not quite as beneficial for consumers.
