MoviePass purchased out of bankruptcy by co-founder
MoviePass, the ill-fated movie ticket subscription service that went bust after launching a membership program that proved unsustainable, is planning a comeback. With the right strategy and business model, could MoviePass succeed the second time around?
The startup was founded in 2011 but didn’t make waves until mid-2017 when it slashed its monthly subscription rate to $9.95 per month. The plan allowed members to watch one movie per day at any theater in the US that accepted debit cards, which was pretty much all of them. 3D and IMAX screenings were excluded, but other than that, it was fair game, with no blackout dates to speak of.
It was an exceptionally good deal – too good, in fact. The company’s business model simply wasn’t sustainable and despite efforts to restructure and stay afloat, MoviePass and its parent company ultimately filed for Chapter 7 bankruptcy.
Now nearly two years later, the outfit is staging a comeback.
Insider reports that co-founder Stacy Spikes was recently granted ownership of the company by a Southern District of New York bankruptcy court judge. Spikes told the publication he was thrilled to have the asset back and is exploring the possibility of relaunching soon. Notably, previous customer data and email addresses were not part of the sale.
Financial terms of the acquisition out of bankruptcy were not shared, although the new owner said his bid was lower than the $250,000 minimum set by a trustee overseeing the bankruptcy.
Spikes has set up a new website for MoviePass where interested parties can register their email address to be notified when the service launches, perhaps as early as next year.