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Muta’Ali Muhammad is all set to bring the documentary MoviePass, MovieCrash to the smaller screens, on May 29, 2024. This crime documentary is going to be about the rise and fall of an American-based well-known subscription for movie tickets.
MoviePass was a movie subscription model, which allowed its subscribers to watch movies as many times as they wanted. The pass came for a nominal price of $9.95 a month. To sign up, customers simply had to provide their information and order the prepaid debit card.
The next step was to pick a movie using the service's official app and select the theatre where they wanted to watch the movie. The subscription pass card had to be used at the theatre to pay for the ticket.
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The upcoming documentary by Muta’Ali Muhammad will explain why the subscription model didn’t work in the long run. It stars Daymond John, John Fichthorn, Stacy Spikes, Ted Farnsworth, and Chris Kelly among others. As we delve deep into this article, let us know more about this subscription-based movie ticketing service and why it failed.
Why did MoviePass fail?
MoviePass was founded by Hamet Watt and Stacey Spikes in 2011 along with the help of Lambert Media, True Ventures, and Moxie Pictures as investors, among others. Despite the enormous success of the initial subscription model, which allowed its users to get unlimited movie tickets for just $9.95 a month, it failed to achieve long-term commercial success.
As their business model didn’t sustain for long. In 2017, the company lost almost $150 million and went bankrupt. The company was also sued for fraud by its investors, once its downfall started, as they had allegedly deceived their investors about the company policy and plans.
The business reportedly failed due to several contributing factors. The main reason was its pricing strategy, which changed drastically. When this pass was launched, the basic subscription was $50 a month, which dropped to $9.95 a month. The company devised this strategy to acquire more customers but this model didn’t work well for them.
As more customers started going to the theater regularly, this led to their downfall, as the company’s profit relied on subscribers not utilizing their memberships. The more the number of people not going, the more the profit. But with $9.95 as the subscription price, customers became more active, which made the company lose money.
Their business model was flawed from the very beginning. It was based on the “breakage model”. In this model, companies assume that their customers/ subscribers will not use their service often or at all. But in this case, the service was too good to not use it regularly.
When will MoviePass, MovieCrash premiere?
The documentary will premiere on May 29, 2024, on HBO and Max. The trailer of this upcoming documentary was released on May 16, 2024.
The official synopsis of this documentary reads:
"In a span of eight years, MoviePass went from being the fastest growing subscription service since Spotify to total bankruptcy, losing over $150 million in 2017 alone."
It continues:
"MoviePass, MovieCrash chronicles the company’s beginnings as an innovative movie ticketing model, exploring the visionary mission of its co-founders, its jaw-dropping early successes and its precipitous downfall caused by mismanagement and corporate greed."
Get ready to watch the rise and fall of MoviePass as it is all set to premiere on May 29, 2024, on HBO and Max.
