Today MoviePass’s parent company announced that it will be shutting down MoviePass tomorrow according to CNBC. With MoviePass you could pay a flat monthly fee to watch movies at many local theaters for just $9.99 a month. This made the service very popular with anyone who enjoyed going to the movies multiple times a year.
Sadly, reports started to appear from very early on that the service was struggling financially. Now it seems finance problems finally forced MoviePass to shutdown. So if you still are a MoviePass customer your cards will no longer work starting tomorrow.
This comes after the July 4 announcement when MoviePass said it would be out of commission for at least several weeks in order to fix technical issues and work on a new version of its app. At the time, MoviePass said it had “plans to use this time to recapitalize in order to facilitate a seamless transition and improved subscriber experience once the service continues.” Later MoviePass confirmed that a security lapse was recently discovered and its system was immediately secured. This was first reported by Tech Crunch, which says that tens of thousands of customer card numbers have been exposed because a critical server was not protected with a password.
Since that security breach was confirmed, MoviePass never again accepted new customers and the website still says they hope to restore service to all subscribers.
Update: MoviePass has posted this letter to subscribers on its website:
Dear MoviePass™ Subscribers,
Over the past several months, MoviePass™ worked hard to relaunch its groundbreaking subscription service and recapitalize the company. While we were able to relaunch the service for some of our subscribers with an improved technology platform, our efforts to recapitalize the company have not been successful to date. As a result, it pains us to inform you that effective at 8 a.m. E.T. on September 14, 2019, we must interrupt service for all current MoviePass™ subscribers. MoviePass™ will be providing subscribers with appropriate refunds for their period of service already paid for. Subscribers will not need to request a refund or contact MoviePass™ customer service to receive a refund. Subscribers will not be charged during the service interruption. At this point, we are unable to predict if or when the MoviePass™ service will continue.
We still deeply believe in the need for the MoviePass™ service in the marketplace, to maintain affordable access to theaters and provide movie lovers with choices of where to go to the movies. In August 2017, MoviePass™ began a transformation of the moviegoing industry by introducing its low monthly price subscription service. Since then, others in the industry have followed our lead. Now, as a result of this transformation, movie lovers throughout the United States have the ability to see movies in theaters using subscription services at prices they can actually afford, albeit with limited choices of theaters using those services. In the course of this industry transformation, MoviePass™ has experienced setbacks and challenges that are well known. Nevertheless, MoviePass™ remained committed to leading and competing in an industry that is resistant to outside competition and change. We believe that fostering competition and change in the moviegoing industry is critical to the satisfaction of the moviegoing public and filmmakers alike.
We thank you for your loyalty to MoviePass™ and sharing our vision for the industry. Although we do not currently know what the future holds for the MoviePass™ service, we hope to find a path that will enable us to continue the service in the future.
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