The idea behind MoviePass was good… you pay
a monthly fee and you can stream as many new
movies as you desire. The advantage was clear:
no more rushing into the cinemas.

Yet MoviePass has included a new passus that might destroy the whole concept. As of August, customers paying 9.95$/month may now only stream three movies per month. The “unlimited” plan has been dropped as it meant a total loss for the company behind MoviePass. Has the net loss been at 20 million US$ in the past months, it now has tripled to more than 70 million US$ and all that with a net worth of only 54 million US$. How is the company surviving if the losses are bigger than it’s capital?

Customers are annoyed that they have been caught with the “unlimited” tag and now seem to be ripped off as they have to pay more for their movie consumption making cinemas the better option (again!).

Even shareholders are now against MoviePass and filed a lawsuit for defrauding them. It seems as if the CEO and CFO of MoviePass have shown false statistics and financial reports to the shareholders covering the true fiscal problems MoviePass is now in.

With the drop below $1 per share the shares have been also put on the watchlist of the NASDAQ and it might be most likely that MoviePass shares will be laid off from trading on the NASDAQ at all.

Another good idea brought down due to too eager plans to satisfy customers…