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A previously disastrously failed service that offered discounted movie tickets, MoviePass is looking to make a comeback with new cryptocurrency backers and a movie production financing scheme.
At least cryptocurrency seems like a good idea. MoviePass was launched in 2011 as a service where every movie ticket you buy from a business costs more than it gives you back.
Then there was the question of how to make money, with the then-CEO telling companies he was chasing users before and after theaters. But then MoviePass told users it did no such thing.
The company's goal was to incur small losses while aiming to become the dominant force in the market. But the losses were huge, consumers were concerned about privacy, and advertisers were frustrated.
It closed in 2019, and in 2020 MoviePass's parent company, HMNY, filed for bankruptcy. The bankruptcy court allowed MoviePass founder Stacey Spikes to buy the company in 2018 despite being fired from the company.
Then, in August 2022, Spikes relaunched the service with plans to start beta testing in more cities, including Chicago. According to the Financial Times , MoviePass is now looking to expand with backers led by Hong Kong-based cryptocurrency firm Animoca Brands.
“MoviePass has a strong vision for entertainment technology and our investment demonstrates our commitment to maximizing the value MoviePass can bring to the film industry,” Yat Siu, co-founder of the Animoca brand, told the publication.
Animoca Brands was founded in 2014 as a joint venture focused on gaming and venture capital. Then you create a blockchain service and trade NFTs.
It was last reported in early 2023 that the company was raising $1 billion for the Metaverse investment fund.
Before completing its first iteration, MoviePass began developing a more viable business model. This remake wants to expand, so it will eventually help finance the film's production.
“With initiatives to increase movie attendance, engage moviegoers for enhanced cinematic experiences, connect studios and their personalities with movie fans,” the company continued, “and make it easier for aspiring filmmakers to access funding opportunity, we believe MoviePass will help the future of cinema."
MoviePass hasn't announced a timeline for its nationwide release. However, it says it will offer membership tiers widely, starting at $10 a month.