Moviepass is coming back

[Frank Cox]

220px-Itsaliveposter.jpg

https://www.businessinsider.com/movi...launch-2021-11

MoviePass, the movie theater ticket subscription service that became a sensation in the summer of 2017 before collapsing in epic fashion, is coming back.

MoviePass cofounder Stacy Spikes was granted ownership of the company by a Southern District of New York bankruptcy court judge who approved the sale on Monday, according to court documents reviewed by Insider. The financial transaction took place on Wednesday.

Spikes had placed a bid of an undisclosed amount to the trustee handling the bankruptcy of Helios and Matheson Analytics (HMNY), the former parent company of MoviePass.

"I can confirm that we acquired MoviePass out of bankruptcy on Wednesday," Spikes said in a statement to Insider. "We are thrilled to have it back and are exploring the possibility of relaunching soon. Our pursuit to reclaim the brand was encouraged by the continued interest from the moviegoing community. We believe, if done properly, theatrical subscription can play an instrumental role in lifting moviegoing attendance to new heights."

MoviePass was part of a bankruptcy auction of Helios and Matheson assets in June 2020, but there were no competitive bids at the time the auction ended. The minimum bid set by the trustee was $250,000. HMNY listed the estimated value of MoviePass between $1 million and $10 million, according to Variety.

Spikes told Insider that since this summer, he'd been working on putting the money together to place a bid to get the company back. He said he made the offer last month. Though Spikes would not disclose the amount, he said his bid was lower than the $250,000 minimum the trustee set in 2020. Customer data and email addresses were not part of the sale, Spikes said.

Spikes hopes to relaunch MoviePass sometime next year. A new site has been created for the relaunch, iwantmoviepass.com, and its logo will now feature a black background with white lettering, ditching its previous red background.

[Bobby Henderson]

I guess the image of the It's Alive movie poster is a joke about MoviePass coming back from the dead.

When I look at that old 1970's movie poster it reminds me that there is still no digital equivalent of the ITC Serif typeface that includes all those alternate characters, like the curved capital "E" glyph.

[Frank Cox]

Yeah, I thought it was appropriate.

[Frank Angel]

How can something that was an epic failure be "worth" 1 to 10 million dollars? Wasn't the whole operation done via internet? So it;s not like they had a sheet load of physical assets like trucks or buildings...at most maybe office furniture and computers. And how does this Spikes guy thing he can make it successful when the former owners couldn't, and it's not like they didn't try; didn't they change the business model and fees more than once?

[Leo Enticknap]

He must figure that the brand has intrinsic value (i.e. that customers of the mk. I version had a positive experience while it lasted, even if the underlying business model was unsustainable), and that it can be used to leverage a new, and significantly different, business model. What that will be, I'm buggered if I know. If it still involves the consumer paying a sum up front for theater admission that is way below the theater's break even point for providing the service, then the shortfall will still have to be made up somehow. I can't see the chains buying into this as a loss leader in the hope of greater concessions sales.

[Scott Norwood]

Stupid idea. The buyer didn't get the customers or any assets, so what's left? Just the name?

This didn't work the first time...not sure why it would work in the future.

[Mitchell Dvoskin]

According to the story below, the former founder paid less than $250,000 to buy it back.

Click Here For The Story

More than two years after its implosion, the movie theater ticket subscription service MoviePass may be back from the dead in a matter of months, Insider reported Thursday. One of the ill-fated company’s co-founders, Stacy Spikes, successfully bought back the bankrupt company earlier this week. “I can confirm that we acquired MoviePass out of bankruptcy on Wednesday,” Spikes said in a statement to Insider. “We are thrilled to have it back and are exploring the possibility of relaunching soon.” He added he hopes to relaunch the service sometime next year. Spikes, who was reportedly fired in 2018 after raising concerns about MoviePass’ rapid downward trajectory, would not disclose the amount he’d bid in order to get the company back. He did, however, tell Insider the amount was lower than $250,000. Spikes added he hopes to relaunch the service sometime next year. MoviePass was founded in 2011, but catapulted to unbridled popularity in the summer of 2017 just before it dropped its unlimited-ticket subscription fee to an unsustainable $10 per month. Lower than the price of a single movie ticket in certain areas, the fee meant that the company was losing money on every customer.

[Bobby Henderson]

This didn't work the first time...not sure why it would work in the future.

There's not only that problem, but there are also competing alternatives. Regardless of one's opinion on AMC Theatres, they do have their "AMC Stubs A-List" program. For $20 per month (or a couple or so bucks more in major markets) you can see up to 3 movies per week in any AMC theater, including their premium-priced auditoriums (IMAX, Dolby Cinema & Prime). One evening ticket on the IMAX-branded screen in my town is just over $15, or over $18 if it's a 3D show. It doesn't take many trips to the theater to offset the cost of a Stubs A-List membership, especially if watching movies on premium priced screens.

I currently have a "Stubs Premiere" membership, which costs $15 per year. That lets you book tickets online without any surcharges and skip the line at the theater. I have considered getting an A-List membership and might do so if I get into a habit of seeing more than a couple or so movies at the theater per month. I'm a little foggy on how the membership works for crossing state lines or even traveling out of my home area. I live close to Texas and am not all that far from the OKC and DFW metros.

Anyway, getting back to the topic, I imagine AMC is not the only chain with its own "all you can eat" movie-going plan. How is Moviepass going to fit in with that?

[Marcel Birgelen]

Maybe his idea is that his bargaining position towards exhibitors will be stronger, since the industry has been shaken up pretty badly by the ongoing pandemic. Meanwhile, like Bobby indicated, chains have been rolling out "all-you-can-watch"-like subscription models themselves, so what options are left to compete?