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MoviePass on the Way to Bankruptcy

Many may know of the once uber-popular cinematic service, MoviePass, which in recent years has begun a slow plummet into the death spiral of liquidation. Originally allowing for subscribers to watch one movie a day for around $10 a month, Helios & Matheson, MoviePass’s sole proprietor, has since rolled back many of these perks in an effort to save face. Their original deal was way too much nectar and they are paying the price. Helios & Matheson Analytics’ (HMNY) stock has dropped 18% in the last two months and is still heading downhill. This is also an accurate reflection of customer appreciation of the service. Since their original one movie a day for $10 a month deal, MoviePass has reduced to three movies a month minus specified blockbusters while still charging customers $10 a month. This is in addition to a new policy that does not allow consumers to see certain movies that fall under the title “premium screening,” which basically means the movie is too popular at the moment. All these cutbacks have customers altogether fed up with this once revolutionary cinema service that had people actually excited to go to theaters again.

Even if MoviePass is slowly dying, this new kind of unique service is the future of cinematic consumerism. The theater industry is on the downhill. Luckily, they have a readily tested solution. MoviePass is just a step in the next wave of cinematic evolution. Much like Amazon is revolutionizing the way we buy and sell merchandise, services like MoviePass will revolutionize the way we buy and sell movie showings. With a simple card and app, going to the movie theater is a simple touch away. But why stop there? Why not continue to roll out benefits and additional services? Such as rewards plans and ordering foods/beverages via the app. The possibilities are numerous and the potential, virtually untapped. Not only could the industry roll back from its depression, but it could become more profitable than ever if businesses were to capitalize upon this opportunity. The cinematic industry is too strong and its hold too firm on global culture to die out completely. Businesses just need to understand this in order for the capitalization to start, consequentially initializing the reemergence of the industry. Once companies understand that their investment will not go down tied to a failing industry, they will see that the opportunity far outweighs any potential consequences. It’s a no-lose situation. MoviePass just calculated its money to services ratio poorly, and like any poorly handled business venture they are headed toward bankruptcy.

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Parker Monroe

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