A whopping 58% of MoviePass users canceled their subscriptions last year, according to a new study
- Finance assistance app Trim said that, after analyzing 400 million transactions of its users in 2018, 58% of its users with MoviePass subscribers canceled the service last year.
- MoviePass users have complained about changes that have made the service less attractive, as the company has tried to get its cash burn under control.
2018 was not a good year for MoviePass.After gaining millions of new users to the service starting in August 2017, when the company dropped its monthly price to $9.95 a month to see one movie per day, the movie-ticket subscription startup went into a tailspin in 2018. 2018 saw issues with the app, bad customer service, the company temporarily running out of cash, and finally - just under a year from when it announced the $9.95 plan - a big change to its plan so subscribers could only see up to three movies a month.
And data suggests that roller coaster was simply too much for many users. According to an estimate from financial assistance app Trim, which analysed 400 million transactions of its users over the last year, 58% of MoviePass subscribers canceled the service in 2018.
According to the Trim data, the highest rate of cancellations happened in June and July. Looking back, those were the months when some major things happened that weakened the MoviePass brand.
AMC launched its own monthly subscription plan, MoviePass introduced surge pricing for titles in high demand, the company temporarily ran out of money and had to borrow $5 million to get the service back up, and by the end of July, it stopped offering many big budget studio movies on the service.
Things haven't gotten any better in 2019 for the company.MoviePass' parent company, Helios and Matheson Analytics, is in danger of being delisted from the Nasdaq (it's currently trading at around $0.02).
There have been problems within MoviePass as well. Business Insider reported recently that there had been employee accusations of inappropriate behavior and that a product manager had sent a company-wide resignation letter describing the work environment as "dangerous and toxic."
Business Insider contacted MoviePass for comment but did not get a response.