<\/title><\/p>\n<style>\n :root { color-scheme: light; supported-color-schemes: light; }\n body { margin: 0; padding: 0; min-width: 100%!important; -ms-text-size-adjust: 100% !important; -webkit-transform: scale(1) !important; -webkit-text-size-adjust: 100% !important; -webkit-font-smoothing: antialiased !important; }\n .body { word-wrap: normal; word-spacing:normal; }\n table.mso { width: 100%; border-collapse: collapse; padding: 0; table-layout: fixed; }\n img { border: 0; outline: none; }\n table { mso-table-lspace: 0px; mso-table-rspace: 0px; }\n td, a, span { mso-line-height-rule: exactly; }\n #root [x-apple-data-detectors=true],\n a[x-apple-data-detectors=true],\n #MessageViewBody a { color: inherit !important; text-decoration: inherit !important; font-size: inherit !important; font-family: inherit !important; font-weight: inherit !important; line-height: inherit !important; }\n span.MsoHyperlink { color: inherit !important; mso-style-priority: 99 !important; }\n span.MsoHyperlinkFollowed { color: inherit !important; 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}\n .table-c { padding:5px; background-color:#FFFFFF; }\n .table-c p { color: #2D2D2D; font-family:'Helvetica',Arial,sans-serif !important;overflow-wrap: break-word; }\n .table-h { padding:5px; background-color:#F1F1F1; }\n .table-h p { color: #2A2A2A; font-family:'Trebuchet MS','Lucida Grande',Tahoma,sans-serif !important;overflow-wrap: break-word; }\n @media only screen and (max-width:667px) {\n .aa, .w100pc { width: 100% !important; }\n .bb img { width: 100% !important; height: auto !important; max-width: none !important; }\n .cc { padding: 0px 8px !important; }\n .ee { padding-top:10px !important;padding-bottom:10px !important; }\n .ff ul, .ff ol { margin: 0px 0px 0px 10px !important;padding: 0px !important; }\n .ff li { margin:10px 0px 0px 10px !important; }\n .r {height:140px !important;}\n .s p { font-size:13px !important;line-height:15px !important; }\n .mob-hide {display:none !important;}\n .mob-show {display: block !important; width: auto !important; overflow: visible !important; float: none !important; max-height: inherit !important; line-height: inherit !important;}\n .mob-stack {width:100% !important;display:block !important;}\n .mob-w-full {width:100% !important;}\n .mob-block {display:block !important;}\n .embed-img {padding:0px 0px 12px 0px !important;}\n .socialShare {padding-top:15px !important;}\n .rec { padding-left:15px!important;padding-right:15px!important; }\n .bodyWrapper { padding:10px 4px 10px 4px !important; }\n .social-mobile {float:left !important;margin-top:10px !important;}\n }\n @media screen and (max-width: 480px) {\n u + .a .gg { width: 100% !important; width: 100vw !important; }\n .tok-heart { padding-top:75% !important; }\n .tok-play { padding-top: 250px !important; }\n }\n @media screen and (max-width: 320px) {\n .tok-heart { padding-top:65% !important; }\n }\n .u { border: 1px solid #CACACA !important; border-radius: 2px !important; background-color: #ffffff !important; padding: 0px 13px 0px 13px !important; font-family:ui-sans-serif,system-ui,-apple-system,BlinkMacSystemFont,\"Segoe UI\",Roboto,\"Helvetica Neue\",Arial,\"Noto Sans\",sans-serif !important;font-size: 12px !important; color: #767676 !important; }\n .u a { text-decoration: none; display: block !important; color: #767676 !important; margin: 0px !important; }\n .u span, .u img { color: #767676 !important;margin:0px !important; max-height:32px !important;background-color:#ffffff !important; }\n<\/style>\n<p><\/p>\n<style><\/style>\n<p><\/head><body class=\"a\" style=\"margin:0px auto;padding:0px;word-wrap:normal;word-spacing:normal;background-color:#FFFFFF;\"><\/p>\n<div role=\"article\" aria-roledescription=\"email\" aria-label=\"email_name\" lang=\"en\" style=\"font-size:1rem\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" align=\"center\" cellpadding=\"0\" class=\"gg\">\n<tr>\n<td align=\"center\" valign=\"top\">\n<table role=\"none\" width=\"670\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" class=\"aa\" style=\"width:670px;table-layout:fixed;\">\n<tr>\n<td class=\"bodyWrapper\" align=\"center\" valign=\"top\" style=\"padding:10px 5px 10px 5px;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"border-width:0px 0px 0px 0px;border-style: solid; border-color: #FFFFFF;border-radius:10px 10px 0px 0px;background-color:#FFFFFF;\" class=\"c\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr id=\"header\">\n<td style=\"padding:15px 15px 0px 15px;\">\n<div style=\"padding-top:0px;padding-right:0px;padding-bottom:20px;padding-left:0px;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td class=\"f\" align=\"right\" valign=\"top\">\n<p> December 25, 2025 | <a data-read-online-tooltip=\"true\" href=\"https:\/\/buildmode.xyz\/p\/the-10-unlimited-movie-pass-that?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\">Read online<\/a><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"center\" valign=\"top\" style=\"padding:15px 0;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"top\">\n<h1 style=\"text-align:left;font-family:'Trebuchet MS','Lucida Grande',Tahoma,sans-serif;font-weight:Bold;font-size:32px;color:#2A2A2A;padding:2px 0;line-height:38px;\"> The $10 Unlimited Movie Pass (That Cost $303 Million) <\/h1>\n<p style=\"text-align:left;font-family:'Helvetica',Arial,sans-serif;font-weight:normal;font-size:20px;color:#3E3E3E;padding:5px 0;line-height:24px;\"> In 2017, MoviePass offered something that sounded impossible: unlimited movies in theaters for $9.95 a month. <\/p>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" class=\"dd\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"left\" valign=\"middle\" class=\"mob-stack\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"right\" class=\"social-mobile\">\n<tr>\n<td align=\"left\" valign=\"middle\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"left\" style=\"width:100%\">\n<tr>\n<td align=\"center\" valign=\"middle\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fbuildmode.xyz%2Fp%2Fthe-10-unlimited-movie-pass-that&utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" style=\"text-decoration:none; display:block;\"><\/p>\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"middle\" style=\"border: 1px solid #E5E7EB; border-radius: 100%; width: 18px; height: 18px; padding: 8px;\"><img decoding=\"async\" style=\"display:block; width:100%; height:100%; max-width:18px; max-height:18px; object-fit: contain;\" alt=\"share on facebook\" width=\"18\" border=\"0\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/static_assets\/header\/facebook.png\"\/><\/td>\n<\/tr>\n<\/table>\n<p><\/a><\/td>\n<td width=\"8\" style=\"width:8px;\"> <\/td>\n<td align=\"center\" valign=\"middle\"><a href=\"https:\/\/twitter.com\/intent\/tweet?text=In+2017%2C+MoviePass+offered+something+that+sounded+impossible%3A+unlimited+movies+in+theaters+for+%249.95+a+month.&url=https%3A%2F%2Fbuildmode.xyz%2Fp%2Fthe-10-unlimited-movie-pass-that&via=tomasmarsal&utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" style=\"text-decoration:none; display:block;\"><\/p>\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"middle\" style=\"border: 1px solid #E5E7EB; border-radius: 100%; width: 18px; height: 18px; padding: 8px;\"><img loading=\"lazy\" decoding=\"async\" style=\"display:block; width:100%; height:100%; max-width:18px; max-height:18px; object-fit: contain;\" alt=\"share on twitter\" width=\"18\" height=\"18\" border=\"0\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/static_assets\/header\/x.png\"\/><\/td>\n<\/tr>\n<\/table>\n<p><\/a><\/td>\n<td width=\"8\" style=\"width:8px;\"> <\/td>\n<td align=\"center\" valign=\"middle\"><a href=\"https:\/\/www.threads.net\/intent\/post?text=In+2017%2C+MoviePass+offered+something+that+sounded+impossible%3A+unlimited+movies+in+theaters+for+%249.95+a+month.+https%3A%2F%2Fbuildmode.xyz%2Fp%2Fthe-10-unlimited-movie-pass-that&utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" style=\"text-decoration:none; display:block;\"><\/p>\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"middle\" style=\"border: 1px solid #E5E7EB; border-radius: 100%; width: 18px; height: 18px; padding: 8px;\"><img loading=\"lazy\" decoding=\"async\" style=\"display:block; width:100%; height:100%; max-width:18px; max-height:18px; object-fit: contain;\" alt=\"share on threads\" width=\"18\" height=\"18\" border=\"0\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/static_assets\/header\/threads.png\"\/><\/td>\n<\/tr>\n<\/table>\n<p><\/a><\/td>\n<td width=\"8\" style=\"width:8px;\"> <\/td>\n<td align=\"center\" valign=\"middle\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite?url=https%3A%2F%2Fbuildmode.xyz%2Fp%2Fthe-10-unlimited-movie-pass-that&utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" style=\"text-decoration:none; display:block;\"><\/p>\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"middle\" style=\"border: 1px solid #E5E7EB; border-radius: 100%; width: 18px; height: 18px; padding: 8px;\"><img loading=\"lazy\" decoding=\"async\" style=\"display:block; width:100%; height:100%; max-width:18px; max-height:18px; object-fit: contain;\" alt=\"share on linkedin\" width=\"18\" height=\"18\" border=\"0\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/static_assets\/header\/linkedin.png\"\/><\/td>\n<\/tr>\n<\/table>\n<p><\/a><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"line-height:0;\">\n<div data-open-tracking=\"true\"> {{OPEN_TRACKING_PIXEL}} <\/div>\n<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<\/td>\n<\/tr>\n<tr id=\"content-blocks\">\n<td class=\"email-card-body\" align=\"center\" valign=\"top\" style=\"padding-bottom:15px;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"padding-bottom:20px;padding-left:15px;padding-right:15px;padding-top:20px; \" class=\"dd\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" style=\"margin:0 auto 0 auto;\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"width:630px;\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/752e7031-d8da-409d-a9a5-4cac5d2b42ef\/0cae6a0e-36ab-43f0-838f-be4f73809274_2048x1396.jpg?t=1771948363\" alt=\"Tracking MoviePass's Bumpy History - The New York Times\" height=\"auto\" width=\"630\" style=\"display:block;width:100%;\" border=\"0\"\/><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In 2017, MoviePass offered something that sounded impossible: unlimited movies in theaters for $9.95 a month. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Less than the price of a single ticket. Watch 30 movies. Pay ten bucks. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> People loved it. Three million subscribers in under a year. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Then it all collapsed. The founders are now pleading guilty to securities fraud. The company burned over $300 million. And the whole thing turned out to be… exactly what it looked like. Too good to be true. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The Original Vision (That Actually Made Sense)<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Stacy Spikes and Hamet Watt founded MoviePass in 2011. Original pricing was between <a class=\"link\" href=\"https:\/\/tms-outsource.com\/blog\/posts\/what-happened-to-moviepass\/?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$29-$50 per month<\/span><\/a> depending on location. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The model made sense at that price point. Similar to gym memberships – most people won\u2019t use it enough to hurt margins. Those who do are offset by those who don\u2019t. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> When MoviePass first launched in San Francisco, <a class=\"link\" href=\"https:\/\/finance.yahoo.com\/news\/too-good-true-rise-fall-133521188.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>19,000 members<\/span><\/a> signed up for the $40\/month service. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Modest traction. Sustainable economics. Building slowly. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> For years, MoviePass operated with around <a class=\"link\" href=\"https:\/\/tms-outsource.com\/blog\/posts\/what-happened-to-moviepass\/?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>20,000 subscribers<\/span><\/a>. Not explosive growth, but the unit economics worked. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" style=\"padding-bottom:20px;padding-left:15px;padding-right:15px;padding-top:20px; \" class=\"dd\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" style=\"margin:0 auto 0 auto;\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"width:630px;\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/0721e554-e3f5-47a1-ab77-f1ca5a109b03\/4ecf81d9-0c57-4993-bd4a-24844e598eaf_1000x743.png?t=1771948363\" alt=\"How Does MoviePass Work & Make Money? - Feedough\" height=\"auto\" width=\"630\" style=\"display:block;width:100%;\" border=\"0\"\/><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Then Helios & Matheson showed up. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The $9.95 Decision That Changed Everything<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In August 2017, <a class=\"link\" href=\"https:\/\/www.thestreet.com\/entertainment\/what-happened-to-moviepass-rise-fall-and-resurrection?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>Helios & Matheson<\/span><\/a>, a New York-based analytics company, purchased a controlling stake in MoviePass. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Farnsworth\u2019s pitch: <a class=\"link\" href=\"https:\/\/us.headtopics.com\/the-definitive-story-of-how-a-controversial-florida-businessman-blew-up-moviepass-and-burned-hundred-7377085?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$25 million for 51%<\/span><\/a> of the company, two board seats, and dropping the price from $50 to $9.95, with a goal of hitting 100,000 subscribers. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The math was insane from day one. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The average US movie ticket price was <a class=\"link\" href=\"https:\/\/www.residualthoughts.com\/2018\/03\/15\/the-numbers-behind-moviepass-and-why-its-probably-doomed\/?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$8.73<\/span><\/a>. If someone watched just two movies per month, MoviePass lost money. Three movies? Massive losses. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass\u2019 website crashed from traffic overload after announcing the $9.95 price. In less than a year, subscribers exploded from 20,000 to over <a class=\"link\" href=\"https:\/\/www.thestreet.com\/entertainment\/what-happened-to-moviepass-rise-fall-and-resurrection?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>3 million<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> By June 2018, MoviePass hit 3 million paying subscribers and represented more than 5% of total US box office receipts, with peak weeks <a class=\"link\" href=\"https:\/\/www.mediapost.com\/publications\/article\/320711\/moviepass-hits-3-million-subscribers.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>reaching 8%<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The growth was absolutely bonkers. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass gained 150,000 new subscribers in just 48 hours after the price drop. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The \u201cData Play\u201d That Wasn\u2019t<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Here\u2019s what Helios & Matheson told investors: <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> They\u2019d monetize user data. Sell viewing habits to studios. Use AI and big data to generate revenue streams beyond subscriptions. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"><a class=\"link\" href=\"https:\/\/www.justice.gov\/criminal\/criminal-vns\/case\/united-states-v-theodore-farnsworth-and-j-michell-lowe?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>Farnsworth and Lowe falsely claimed HMNY<\/span><\/a> possessed \u201cbig data\u201d and \u201cartificial intelligence\u201d platforms to generate revenue by analyzing and monetizing MoviePass subscriber data. They knew HMNY did not possess these technologies or capabilities. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> It was all bullshit. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> CEO Ted Farnsworth told TheStreet that MoviePass planned to leverage its 3 million subscribers to provide marketing and analytics to film studios, increasing revenue by <a class=\"link\" href=\"https:\/\/www.thestreet.com\/markets\/moviepass-parent-plummets-20-to-new-all-time-low-14652091?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$6-$8 per subscriber<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> But they didn\u2019t have the technology. They didn\u2019t have the partnerships. They were just… losing money. Lots of it. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The Burn Rate Nobody Could Ignore<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In April 2018, Helios disclosed it had been losing an average of <a class=\"link\" href=\"https:\/\/finance.yahoo.com\/news\/too-good-true-rise-fall-133521188.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$20 million<\/span><\/a> per month since September 2017. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Twenty million. Every month. For seven months. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In May 2018, MoviePass burned through <a class=\"link\" href=\"https:\/\/money.cnn.com\/2018\/07\/02\/media\/moviepass-stock-debt-sale\/index.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$40 million in a single month<\/span><\/a>. Previous SEC filings showed average monthly burn of $21.7 million. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In May 2018, Helios & Matheson revealed it had only $15.5 million in cash at the end of April while burning $21.7 million monthly. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The company was literally days away from running out of money. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass burned through more than $219 million in cash since the beginning of 2018. Over $150 million was spent in Q2 2018 alone. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">When the Money Ran Out (Literally)<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> July 26, 2018. MoviePass stopped working. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Following a service outage on July 26, MoviePass was forced to borrow $5 million to continue operations. CEO Mitch Lowe apologized, stating the service was back \u201cup-and-running with stability at 100%\u201d. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The company had literally run out of money mid-day. Subscribers couldn\u2019t buy tickets. The app just… stopped. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> They borrowed $5 million emergency cash just to turn the lights back on. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" style=\"padding-bottom:20px;padding-left:15px;padding-right:15px;padding-top:20px; \" class=\"dd\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" style=\"margin:0 auto 0 auto;\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"width:630px;\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/37992654-f06f-433b-bb55-1baf9aa03569\/1b285f87-3ef6-4fcf-8845-5d12e7cb35e8_1200x1200.jpg?t=1771948363\" alt=\"Why is MoviePass down? It temporarily ran out of money - CNET\" height=\"auto\" width=\"630\" style=\"display:block;width:100%;\" border=\"0\"\/><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Then came the desperate pivots: <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding-bottom:12px;padding-left:37px;padding-right:27px;padding-top:12px;\" class=\"ee\">\n<div style=\"margin-left:0px;\" class=\"edm_outlooklist\">\n<ul style=\"font-weight:normal;list-style-type:disc;margin-bottom:12px !important;margin-top:12px !important;padding:0px 0px 0px 0px;\">\n<li class=\"listItem ultext\">\n<p style=\"mso-line-height-alt:150.0%;padding:0px;text-align:left;word-break:break-word;\"> Surge pricing added ($2-$6 extra for popular showtimes) <\/p>\n<\/li>\n<li class=\"listItem ultext\">\n<p style=\"mso-line-height-alt:150.0%;padding:0px;text-align:left;word-break:break-word;\"> New releases blacked out (no Mission Impossible, no The Meg) <\/p>\n<\/li>\n<li class=\"listItem ultext\">\n<p style=\"mso-line-height-alt:150.0%;padding:0px;text-align:left;word-break:break-word;\"> Unlimited plan killed, replaced with 3 movies\/month <\/p>\n<\/li>\n<li class=\"listItem ultext\">\n<p style=\"mso-line-height-alt:150.0%;padding:0px;text-align:left;word-break:break-word;\"> Price changed 11 times in 8 months <\/p>\n<\/li>\n<\/ul>\n<\/div>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass changed its offering 11 times in its brief history. The company modified deals six times just in the first eight months of 2018. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Subscribers fled. MoviePass lost a million subscribers by October 2018. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The Stock Price Collapse<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Helios stock skyrocketed from under $3 per share before the MoviePass deal to an intraday high of <a class=\"link\" href=\"https:\/\/finance.yahoo.com\/news\/too-good-true-rise-fall-133521188.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$38.86 on October 11, 2017<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Peak euphoria. Wall Street believed the hype. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Then reality hit. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Helios announced a 250-to-1 reverse stock split in July 2018 to maintain its Nasdaq listing. When you need a 250-to-1 reverse split, you\u2019re in serious trouble. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> By late 2018, Helios shares were trading at $0.10. From $38.86 to ten cents. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" style=\"padding-bottom:20px;padding-left:15px;padding-right:15px;padding-top:20px; \" class=\"dd\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" style=\"margin:0 auto 0 auto;\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"width:604px;\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/2a7f3b76-6e10-426e-87cd-9edde099961e\/6b63d270-db65-41d7-8883-8c4a35b8d85a_700x579.jpg?t=1771948364\" alt=\"MoviePass Owner Helios & Matheson Crashes, Burns $21.7 Million Per Month - Markets Insider\" height=\"auto\" width=\"604\" style=\"display:block;width:100%;\" border=\"0\"\/><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> That\u2019s a 99.7% value destruction. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The End<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> September 2019: MoviePass shut down permanently. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> January 28, 2020: Helios and Matheson filed for <a class=\"link\" href=\"https:\/\/variety.com\/2020\/digital\/news\/moviepass-bankruptcy-parent-helios-and-matheson-1203485327\/?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>Chapter 7 bankruptcy<\/span><\/a>. Full-year 2018 net loss was $329.3 million on revenue of $232.3 million. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> They lost more money than they made in revenue. By a lot. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The Criminal Charges<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In September 2024, former MoviePass CEO Mitch Lowe pleaded guilty to securities fraud conspiracy, facing a maximum of five years in federal prison. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In January 2025, Ted Farnsworth pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities fraud, facing up to 25 years in prison (20 years for securities fraud, 5 years for conspiracy). <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> According to the plea agreement, the government estimates total losses from the scheme at $303 million. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" style=\"padding-bottom:20px;padding-left:15px;padding-right:15px;padding-top:20px; \" class=\"dd\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" style=\"margin:0 auto 0 auto;\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"width:516px;\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/1b4d7c59-dd28-4edd-b30f-9a3d5b6cd8e6\/21f5ecc3-cca0-49ee-8d58-cf2463a4bca7_600x400.jpg?t=1771948364\" alt=\"Former MoviePass Executive Pleads Guilty to Fraud Over 'Unlimited' Plan - The New York Times\" height=\"auto\" width=\"516\" style=\"display:block;width:100%;\" border=\"0\"\/><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Prosecutors alleged Farnsworth and Lowe knew the $9.95 unlimited plan was a temporary marketing gimmick to grow subscribers and artificially inflate HMNY\u2019s stock price. They also directed employees to throttle service for high-volume users, forcing password resets to lock people out. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> So not only was the business model fake – they were secretly preventing people from using the service they\u2019d paid for. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">What AMC Learned<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> While MoviePass was imploding, AMC was watching closely. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In 2018, AMC Theatres launched its own <a class=\"link\" href=\"https:\/\/money.cnn.com\/2018\/07\/02\/media\/moviepass-stock-debt-sale\/index.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$20-per-month subscription service<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The difference? AMC owns the theaters. They\u2019re not paying full retail for tickets. Their cost is marginal (cleaning, utilities, staffing – costs they\u2019d incur anyway for empty seats). <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass pioneered the subscription model for theaters. Then failed spectacularly. Then AMC, Cinemark, and Regal copied the playbook – but with economics that actually work. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The Relaunch Nobody Asked For<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Stacy Spikes relaunched MoviePass in late 2022 with a tiered credit system. Subscribers pay from $10\/month for credits that vary based on movie release date, showtime, and format. In February 2024, <a class=\"link\" href=\"https:\/\/www.earnestanalytics.com\/insights\/the-moviepass-saga-rising-from-the-ashes-but-not-really?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>MoviePass announced its first-ever profitable year in 2023<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> So the sustainable model was… exactly what they started with in 2011. Tiered pricing. Actual viable economics. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> It just took $303 million in losses and two criminal convictions to get back there. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" style=\"font-size:0px;line-height:0px;padding:30px 0px 30px;\" class=\"dd\">\n<table class=\"j\" role=\"none\" width=\"50%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td> <\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">What Actually Went Wrong<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"><b>The Math Never Worked<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> This wasn\u2019t a complex failure. The unit economics were broken from day one. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> $9.95\/month subscription. $8.73 average ticket. Two movies = loss. Three movies = bigger loss. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> There was no \u201cpath to profitability.\u201d There was no \u201cdata monetization.\u201d There was just… spending $270\/month per heavy user while collecting $10. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"><b>The Gym Membership Fallacy<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass banked on people not using the service. Like gyms. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Except: Going to the gym requires effort, time, and discomfort. Watching movies is entertainment people actually want to do. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> CEO Mitch Lowe said people would see around 10 movies per year with MoviePass. At $8.73 per ticket, that\u2019s $87.30 in costs for $119.40 in revenue ($9.95 \u00d7 12). Barely breakeven – and only if usage didn\u2019t spike. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> But when you have an unlimited debit card for movies, why wouldn\u2019t you use it? The moral hazard was obvious. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"><b>Stock Manipulation Over Business Building<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Farnsworth and Lowe knew the $9.95 plan was a temporary marketing gimmick to grow subscribers and artificially inflate HMNY stock price. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> This wasn\u2019t about building a sustainable company. It was about pumping the stock, attracting investors, and… well, they didn\u2019t think much beyond that. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"><b>The \u201cWe\u2019ll Figure It Out Later\u201d Strategy<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> They\u2019d get big, then negotiate with theaters for discounts. They\u2019d monetize data somehow. They\u2019d find revenue streams. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> None of it happened. Theaters had zero incentive to give discounts to a company that was already sending them paying customers. The data play never materialized. <\/p>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td>\n<tr>\n<td class=\"b\" align=\"center\" valign=\"top\" bgcolor=\"#030712\" style=\"padding:0px 0px 0px 0px;border-style:solid;border-width: 0px 0px 0px 0px;border-color: #FFFFFF;border-bottom-left-radius:10px;border-bottom-right-radius:10px;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"top\" bgcolor=\"#030712\" style=\"padding:12px\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td><span style=\"padding-left:1px;\"><\/span><\/td>\n<td align=\"center\" valign=\"middle\" width=\"75\" style=\"width:75px;\"><a href=\"https:\/\/www.instagram.com\/buildmode.xyz\/?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" style=\"text-decoration:none;\"><img loading=\"lazy\" decoding=\"async\" width=\"22\" height=\"22\" alt=\"ig\" border=\"0\" style=\"display:block;max-width:22px;color:light\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/static_assets\/instagram_light.png\"\/><\/a><\/td>\n<td><span style=\"padding-left:1px;\"><\/span><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td height=\"10\" style=\"line-height:1px;font-size:1px;height:10px;\"> <\/td>\n<\/tr>\n<tr>\n<td class=\"w\" align=\"center\" valign=\"top\" style=\"padding:15px 15px 15px 15px;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"top\">\n<p style=\"font-family:'Verdana',Geneva,sans-serif;color:#FFFFFF!important;\"> Update your email preferences or unsubscribe <a class=\"link\" href=\"https:\/\/buildmode.xyz\/subscribe\/{{subscriber_id}}\/preferences?post_id=e60f7969-0ff3-436a-af1a-f2cd83132ec2&last_resource_guid=Post%3Ae60f7969-0ff3-436a-af1a-f2cd83132ec2&utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million&last_resource_guid=Post%3Ae60f7969-0ff3-436a-af1a-f2cd83132ec2\" style=\"text-decoration:underline;text-decoration-color:#FFFFFF!important;color:#FFFFFF!important;\"> here<\/a><\/p>\n<p class=\"copyright\" style=\"font-family:'Verdana',Geneva,sans-serif;color:#FFFFFF!important;\"> © 2026 BuildMode <\/p>\n<p style=\"font-family:'Verdana',Geneva,sans-serif;color:#FFFFFF!important;\"> 2093 Philadelphia Pike<br \/>Claymont, DE 19703, United States <\/p>\n<\/td>\n<\/tr>\n<tr style=\"display: table-row !important;\">\n<td align=\"center\" valign=\"top\" style=\"padding-top:20px;\" style=\"display:table-cell !important;\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\" style=\"display:table !important;\">\n<tr style=\"display:table-row !important;\">\n<td class=\"u\" align=\"center\" valign=\"middle\" height=\"32\" style=\"height:32px;display:table-cell !important; 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{"id":151,"date":"2026-02-24T15:52:42","date_gmt":"2026-02-24T15:52:42","guid":{"rendered":"https:\/\/buildmode.xyz\/?p=151"},"modified":"2026-02-24T15:52:42","modified_gmt":"2026-02-24T15:52:42","slug":"the-10-unlimited-movie-pass-that-cost-303-million","status":"publish","type":"post","link":"https:\/\/buildmode.xyz\/uncategorized\/the-10-unlimited-movie-pass-that-cost-303-million\/","title":{"rendered":"The $10 Unlimited Movie Pass (That Cost $303 Million)"},"content":{"rendered":"

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float: none !important; max-height: inherit !important; line-height: inherit !important;}\n .mob-stack {width:100% !important;display:block !important;}\n .mob-w-full {width:100% !important;}\n .mob-block {display:block !important;}\n .embed-img {padding:0px 0px 12px 0px !important;}\n .socialShare {padding-top:15px !important;}\n .rec { padding-left:15px!important;padding-right:15px!important; }\n .bodyWrapper { padding:10px 4px 10px 4px !important; }\n .social-mobile {float:left !important;margin-top:10px !important;}\n }\n @media screen and (max-width: 480px) {\n u + .a .gg { width: 100% !important; width: 100vw !important; }\n .tok-heart { padding-top:75% !important; }\n .tok-play { padding-top: 250px !important; }\n }\n @media screen and (max-width: 320px) {\n .tok-heart { padding-top:65% !important; }\n }\n .u { border: 1px solid #CACACA !important; border-radius: 2px !important; background-color: #ffffff !important; padding: 0px 13px 0px 13px !important; font-family:ui-sans-serif,system-ui,-apple-system,BlinkMacSystemFont,\"Segoe UI\",Roboto,\"Helvetica Neue\",Arial,\"Noto Sans\",sans-serif !important;font-size: 12px !important; color: #767676 !important; }\n .u a { text-decoration: none; display: block !important; color: #767676 !important; margin: 0px !important; }\n .u span, .u img { color: #767676 !important;margin:0px !important; max-height:32px !important;background-color:#ffffff !important; }\n<\/style>\n<p><\/p>\n<style><\/style>\n<p><\/head><body class=\"a\" style=\"margin:0px auto;padding:0px;word-wrap:normal;word-spacing:normal;background-color:#FFFFFF;\"><\/p>\n<div role=\"article\" aria-roledescription=\"email\" aria-label=\"email_name\" lang=\"en\" style=\"font-size:1rem\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" align=\"center\" cellpadding=\"0\" class=\"gg\">\n<tr>\n<td align=\"center\" valign=\"top\">\n<table role=\"none\" width=\"670\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" class=\"aa\" style=\"width:670px;table-layout:fixed;\">\n<tr>\n<td class=\"bodyWrapper\" align=\"center\" valign=\"top\" style=\"padding:10px 5px 10px 5px;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"border-width:0px 0px 0px 0px;border-style: solid; border-color: #FFFFFF;border-radius:10px 10px 0px 0px;background-color:#FFFFFF;\" class=\"c\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr id=\"header\">\n<td style=\"padding:15px 15px 0px 15px;\">\n<div style=\"padding-top:0px;padding-right:0px;padding-bottom:20px;padding-left:0px;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td class=\"f\" align=\"right\" valign=\"top\">\n<p> December 25, 2025 | <a data-read-online-tooltip=\"true\" href=\"https:\/\/buildmode.xyz\/p\/the-10-unlimited-movie-pass-that?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\">Read online<\/a><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"center\" valign=\"top\" style=\"padding:15px 0;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"top\">\n<h1 style=\"text-align:left;font-family:'Trebuchet MS','Lucida Grande',Tahoma,sans-serif;font-weight:Bold;font-size:32px;color:#2A2A2A;padding:2px 0;line-height:38px;\"> The $10 Unlimited Movie Pass (That Cost $303 Million) <\/h1>\n<p style=\"text-align:left;font-family:'Helvetica',Arial,sans-serif;font-weight:normal;font-size:20px;color:#3E3E3E;padding:5px 0;line-height:24px;\"> In 2017, MoviePass offered something that sounded impossible: unlimited movies in theaters for $9.95 a month. <\/p>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" class=\"dd\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"left\" valign=\"middle\" class=\"mob-stack\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"right\" class=\"social-mobile\">\n<tr>\n<td align=\"left\" valign=\"middle\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"left\" style=\"width:100%\">\n<tr>\n<td align=\"center\" valign=\"middle\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fbuildmode.xyz%2Fp%2Fthe-10-unlimited-movie-pass-that&utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" style=\"text-decoration:none; display:block;\"><\/p>\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"middle\" style=\"border: 1px solid #E5E7EB; border-radius: 100%; width: 18px; height: 18px; padding: 8px;\"><img decoding=\"async\" style=\"display:block; width:100%; height:100%; max-width:18px; max-height:18px; object-fit: contain;\" alt=\"share on facebook\" width=\"18\" border=\"0\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/static_assets\/header\/facebook.png\"\/><\/td>\n<\/tr>\n<\/table>\n<p><\/a><\/td>\n<td width=\"8\" style=\"width:8px;\"> <\/td>\n<td align=\"center\" valign=\"middle\"><a href=\"https:\/\/twitter.com\/intent\/tweet?text=In+2017%2C+MoviePass+offered+something+that+sounded+impossible%3A+unlimited+movies+in+theaters+for+%249.95+a+month.&url=https%3A%2F%2Fbuildmode.xyz%2Fp%2Fthe-10-unlimited-movie-pass-that&via=tomasmarsal&utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" style=\"text-decoration:none; display:block;\"><\/p>\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"middle\" style=\"border: 1px solid #E5E7EB; border-radius: 100%; width: 18px; height: 18px; padding: 8px;\"><img loading=\"lazy\" decoding=\"async\" style=\"display:block; width:100%; height:100%; max-width:18px; max-height:18px; object-fit: contain;\" alt=\"share on twitter\" width=\"18\" height=\"18\" border=\"0\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/static_assets\/header\/x.png\"\/><\/td>\n<\/tr>\n<\/table>\n<p><\/a><\/td>\n<td width=\"8\" style=\"width:8px;\"> <\/td>\n<td align=\"center\" valign=\"middle\"><a href=\"https:\/\/www.threads.net\/intent\/post?text=In+2017%2C+MoviePass+offered+something+that+sounded+impossible%3A+unlimited+movies+in+theaters+for+%249.95+a+month.+https%3A%2F%2Fbuildmode.xyz%2Fp%2Fthe-10-unlimited-movie-pass-that&utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" style=\"text-decoration:none; display:block;\"><\/p>\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"middle\" style=\"border: 1px solid #E5E7EB; border-radius: 100%; width: 18px; height: 18px; padding: 8px;\"><img loading=\"lazy\" decoding=\"async\" style=\"display:block; width:100%; height:100%; max-width:18px; max-height:18px; object-fit: contain;\" alt=\"share on threads\" width=\"18\" height=\"18\" border=\"0\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/static_assets\/header\/threads.png\"\/><\/td>\n<\/tr>\n<\/table>\n<p><\/a><\/td>\n<td width=\"8\" style=\"width:8px;\"> <\/td>\n<td align=\"center\" valign=\"middle\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite?url=https%3A%2F%2Fbuildmode.xyz%2Fp%2Fthe-10-unlimited-movie-pass-that&utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" style=\"text-decoration:none; display:block;\"><\/p>\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"middle\" style=\"border: 1px solid #E5E7EB; border-radius: 100%; width: 18px; height: 18px; padding: 8px;\"><img loading=\"lazy\" decoding=\"async\" style=\"display:block; width:100%; height:100%; max-width:18px; max-height:18px; object-fit: contain;\" alt=\"share on linkedin\" width=\"18\" height=\"18\" border=\"0\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/static_assets\/header\/linkedin.png\"\/><\/td>\n<\/tr>\n<\/table>\n<p><\/a><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"line-height:0;\">\n<div data-open-tracking=\"true\"> {{OPEN_TRACKING_PIXEL}} <\/div>\n<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<\/td>\n<\/tr>\n<tr id=\"content-blocks\">\n<td class=\"email-card-body\" align=\"center\" valign=\"top\" style=\"padding-bottom:15px;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"padding-bottom:20px;padding-left:15px;padding-right:15px;padding-top:20px; \" class=\"dd\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" style=\"margin:0 auto 0 auto;\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"width:630px;\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/752e7031-d8da-409d-a9a5-4cac5d2b42ef\/0cae6a0e-36ab-43f0-838f-be4f73809274_2048x1396.jpg?t=1771948363\" alt=\"Tracking MoviePass's Bumpy History - The New York Times\" height=\"auto\" width=\"630\" style=\"display:block;width:100%;\" border=\"0\"\/><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In 2017, MoviePass offered something that sounded impossible: unlimited movies in theaters for $9.95 a month. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Less than the price of a single ticket. Watch 30 movies. Pay ten bucks. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> People loved it. Three million subscribers in under a year. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Then it all collapsed. The founders are now pleading guilty to securities fraud. The company burned over $300 million. And the whole thing turned out to be… exactly what it looked like. Too good to be true. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The Original Vision (That Actually Made Sense)<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Stacy Spikes and Hamet Watt founded MoviePass in 2011. Original pricing was between <a class=\"link\" href=\"https:\/\/tms-outsource.com\/blog\/posts\/what-happened-to-moviepass\/?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$29-$50 per month<\/span><\/a> depending on location. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The model made sense at that price point. Similar to gym memberships – most people won\u2019t use it enough to hurt margins. Those who do are offset by those who don\u2019t. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> When MoviePass first launched in San Francisco, <a class=\"link\" href=\"https:\/\/finance.yahoo.com\/news\/too-good-true-rise-fall-133521188.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>19,000 members<\/span><\/a> signed up for the $40\/month service. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Modest traction. Sustainable economics. Building slowly. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> For years, MoviePass operated with around <a class=\"link\" href=\"https:\/\/tms-outsource.com\/blog\/posts\/what-happened-to-moviepass\/?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>20,000 subscribers<\/span><\/a>. Not explosive growth, but the unit economics worked. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" style=\"padding-bottom:20px;padding-left:15px;padding-right:15px;padding-top:20px; \" class=\"dd\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" style=\"margin:0 auto 0 auto;\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"width:630px;\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/0721e554-e3f5-47a1-ab77-f1ca5a109b03\/4ecf81d9-0c57-4993-bd4a-24844e598eaf_1000x743.png?t=1771948363\" alt=\"How Does MoviePass Work & Make Money? - Feedough\" height=\"auto\" width=\"630\" style=\"display:block;width:100%;\" border=\"0\"\/><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Then Helios & Matheson showed up. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The $9.95 Decision That Changed Everything<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In August 2017, <a class=\"link\" href=\"https:\/\/www.thestreet.com\/entertainment\/what-happened-to-moviepass-rise-fall-and-resurrection?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>Helios & Matheson<\/span><\/a>, a New York-based analytics company, purchased a controlling stake in MoviePass. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Farnsworth\u2019s pitch: <a class=\"link\" href=\"https:\/\/us.headtopics.com\/the-definitive-story-of-how-a-controversial-florida-businessman-blew-up-moviepass-and-burned-hundred-7377085?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$25 million for 51%<\/span><\/a> of the company, two board seats, and dropping the price from $50 to $9.95, with a goal of hitting 100,000 subscribers. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The math was insane from day one. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The average US movie ticket price was <a class=\"link\" href=\"https:\/\/www.residualthoughts.com\/2018\/03\/15\/the-numbers-behind-moviepass-and-why-its-probably-doomed\/?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$8.73<\/span><\/a>. If someone watched just two movies per month, MoviePass lost money. Three movies? Massive losses. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass\u2019 website crashed from traffic overload after announcing the $9.95 price. In less than a year, subscribers exploded from 20,000 to over <a class=\"link\" href=\"https:\/\/www.thestreet.com\/entertainment\/what-happened-to-moviepass-rise-fall-and-resurrection?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>3 million<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> By June 2018, MoviePass hit 3 million paying subscribers and represented more than 5% of total US box office receipts, with peak weeks <a class=\"link\" href=\"https:\/\/www.mediapost.com\/publications\/article\/320711\/moviepass-hits-3-million-subscribers.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>reaching 8%<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The growth was absolutely bonkers. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass gained 150,000 new subscribers in just 48 hours after the price drop. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The \u201cData Play\u201d That Wasn\u2019t<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Here\u2019s what Helios & Matheson told investors: <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> They\u2019d monetize user data. Sell viewing habits to studios. Use AI and big data to generate revenue streams beyond subscriptions. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"><a class=\"link\" href=\"https:\/\/www.justice.gov\/criminal\/criminal-vns\/case\/united-states-v-theodore-farnsworth-and-j-michell-lowe?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>Farnsworth and Lowe falsely claimed HMNY<\/span><\/a> possessed \u201cbig data\u201d and \u201cartificial intelligence\u201d platforms to generate revenue by analyzing and monetizing MoviePass subscriber data. They knew HMNY did not possess these technologies or capabilities. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> It was all bullshit. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> CEO Ted Farnsworth told TheStreet that MoviePass planned to leverage its 3 million subscribers to provide marketing and analytics to film studios, increasing revenue by <a class=\"link\" href=\"https:\/\/www.thestreet.com\/markets\/moviepass-parent-plummets-20-to-new-all-time-low-14652091?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$6-$8 per subscriber<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> But they didn\u2019t have the technology. They didn\u2019t have the partnerships. They were just… losing money. Lots of it. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The Burn Rate Nobody Could Ignore<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In April 2018, Helios disclosed it had been losing an average of <a class=\"link\" href=\"https:\/\/finance.yahoo.com\/news\/too-good-true-rise-fall-133521188.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$20 million<\/span><\/a> per month since September 2017. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Twenty million. Every month. For seven months. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In May 2018, MoviePass burned through <a class=\"link\" href=\"https:\/\/money.cnn.com\/2018\/07\/02\/media\/moviepass-stock-debt-sale\/index.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$40 million in a single month<\/span><\/a>. Previous SEC filings showed average monthly burn of $21.7 million. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In May 2018, Helios & Matheson revealed it had only $15.5 million in cash at the end of April while burning $21.7 million monthly. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The company was literally days away from running out of money. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass burned through more than $219 million in cash since the beginning of 2018. Over $150 million was spent in Q2 2018 alone. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">When the Money Ran Out (Literally)<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> July 26, 2018. MoviePass stopped working. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Following a service outage on July 26, MoviePass was forced to borrow $5 million to continue operations. CEO Mitch Lowe apologized, stating the service was back \u201cup-and-running with stability at 100%\u201d. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The company had literally run out of money mid-day. Subscribers couldn\u2019t buy tickets. The app just… stopped. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> They borrowed $5 million emergency cash just to turn the lights back on. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" style=\"padding-bottom:20px;padding-left:15px;padding-right:15px;padding-top:20px; \" class=\"dd\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" style=\"margin:0 auto 0 auto;\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"width:630px;\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/37992654-f06f-433b-bb55-1baf9aa03569\/1b285f87-3ef6-4fcf-8845-5d12e7cb35e8_1200x1200.jpg?t=1771948363\" alt=\"Why is MoviePass down? It temporarily ran out of money - CNET\" height=\"auto\" width=\"630\" style=\"display:block;width:100%;\" border=\"0\"\/><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Then came the desperate pivots: <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding-bottom:12px;padding-left:37px;padding-right:27px;padding-top:12px;\" class=\"ee\">\n<div style=\"margin-left:0px;\" class=\"edm_outlooklist\">\n<ul style=\"font-weight:normal;list-style-type:disc;margin-bottom:12px !important;margin-top:12px !important;padding:0px 0px 0px 0px;\">\n<li class=\"listItem ultext\">\n<p style=\"mso-line-height-alt:150.0%;padding:0px;text-align:left;word-break:break-word;\"> Surge pricing added ($2-$6 extra for popular showtimes) <\/p>\n<\/li>\n<li class=\"listItem ultext\">\n<p style=\"mso-line-height-alt:150.0%;padding:0px;text-align:left;word-break:break-word;\"> New releases blacked out (no Mission Impossible, no The Meg) <\/p>\n<\/li>\n<li class=\"listItem ultext\">\n<p style=\"mso-line-height-alt:150.0%;padding:0px;text-align:left;word-break:break-word;\"> Unlimited plan killed, replaced with 3 movies\/month <\/p>\n<\/li>\n<li class=\"listItem ultext\">\n<p style=\"mso-line-height-alt:150.0%;padding:0px;text-align:left;word-break:break-word;\"> Price changed 11 times in 8 months <\/p>\n<\/li>\n<\/ul>\n<\/div>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass changed its offering 11 times in its brief history. The company modified deals six times just in the first eight months of 2018. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Subscribers fled. MoviePass lost a million subscribers by October 2018. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The Stock Price Collapse<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Helios stock skyrocketed from under $3 per share before the MoviePass deal to an intraday high of <a class=\"link\" href=\"https:\/\/finance.yahoo.com\/news\/too-good-true-rise-fall-133521188.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$38.86 on October 11, 2017<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Peak euphoria. Wall Street believed the hype. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Then reality hit. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Helios announced a 250-to-1 reverse stock split in July 2018 to maintain its Nasdaq listing. When you need a 250-to-1 reverse split, you\u2019re in serious trouble. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> By late 2018, Helios shares were trading at $0.10. From $38.86 to ten cents. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" style=\"padding-bottom:20px;padding-left:15px;padding-right:15px;padding-top:20px; \" class=\"dd\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" style=\"margin:0 auto 0 auto;\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"width:604px;\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/2a7f3b76-6e10-426e-87cd-9edde099961e\/6b63d270-db65-41d7-8883-8c4a35b8d85a_700x579.jpg?t=1771948364\" alt=\"MoviePass Owner Helios & Matheson Crashes, Burns $21.7 Million Per Month - Markets Insider\" height=\"auto\" width=\"604\" style=\"display:block;width:100%;\" border=\"0\"\/><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> That\u2019s a 99.7% value destruction. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The End<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> September 2019: MoviePass shut down permanently. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> January 28, 2020: Helios and Matheson filed for <a class=\"link\" href=\"https:\/\/variety.com\/2020\/digital\/news\/moviepass-bankruptcy-parent-helios-and-matheson-1203485327\/?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>Chapter 7 bankruptcy<\/span><\/a>. Full-year 2018 net loss was $329.3 million on revenue of $232.3 million. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> They lost more money than they made in revenue. By a lot. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The Criminal Charges<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In September 2024, former MoviePass CEO Mitch Lowe pleaded guilty to securities fraud conspiracy, facing a maximum of five years in federal prison. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In January 2025, Ted Farnsworth pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities fraud, facing up to 25 years in prison (20 years for securities fraud, 5 years for conspiracy). <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> According to the plea agreement, the government estimates total losses from the scheme at $303 million. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" style=\"padding-bottom:20px;padding-left:15px;padding-right:15px;padding-top:20px; \" class=\"dd\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" style=\"margin:0 auto 0 auto;\">\n<tr>\n<td align=\"center\" valign=\"top\" style=\"width:516px;\"><img decoding=\"async\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/uploads\/asset\/file\/1b4d7c59-dd28-4edd-b30f-9a3d5b6cd8e6\/21f5ecc3-cca0-49ee-8d58-cf2463a4bca7_600x400.jpg?t=1771948364\" alt=\"Former MoviePass Executive Pleads Guilty to Fraud Over 'Unlimited' Plan - The New York Times\" height=\"auto\" width=\"516\" style=\"display:block;width:100%;\" border=\"0\"\/><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Prosecutors alleged Farnsworth and Lowe knew the $9.95 unlimited plan was a temporary marketing gimmick to grow subscribers and artificially inflate HMNY\u2019s stock price. They also directed employees to throttle service for high-volume users, forcing password resets to lock people out. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> So not only was the business model fake – they were secretly preventing people from using the service they\u2019d paid for. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">What AMC Learned<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> While MoviePass was imploding, AMC was watching closely. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> In 2018, AMC Theatres launched its own <a class=\"link\" href=\"https:\/\/money.cnn.com\/2018\/07\/02\/media\/moviepass-stock-debt-sale\/index.html?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>$20-per-month subscription service<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> The difference? AMC owns the theaters. They\u2019re not paying full retail for tickets. Their cost is marginal (cleaning, utilities, staffing – costs they\u2019d incur anyway for empty seats). <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass pioneered the subscription model for theaters. Then failed spectacularly. Then AMC, Cinemark, and Regal copied the playbook – but with economics that actually work. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">The Relaunch Nobody Asked For<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Stacy Spikes relaunched MoviePass in late 2022 with a tiered credit system. Subscribers pay from $10\/month for credits that vary based on movie release date, showtime, and format. In February 2024, <a class=\"link\" href=\"https:\/\/www.earnestanalytics.com\/insights\/the-moviepass-saga-rising-from-the-ashes-but-not-really?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span>MoviePass announced its first-ever profitable year in 2023<\/span><\/a>. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> So the sustainable model was… exactly what they started with in 2011. Tiered pricing. Actual viable economics. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> It just took $303 million in losses and two criminal convictions to get back there. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\" style=\"font-size:0px;line-height:0px;padding:30px 0px 30px;\" class=\"dd\">\n<table class=\"j\" role=\"none\" width=\"50%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td> <\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" valign=\"top\" style=\"color:#2A2A2A;font-weight:normal;padding:0px 15px;text-align:left;\">\n<h4 style=\"color:#2A2A2A;font-weight:normal;mso-line-height-alt:112.5%;\">What Actually Went Wrong<\/h4>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"><b>The Math Never Worked<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> This wasn\u2019t a complex failure. The unit economics were broken from day one. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> $9.95\/month subscription. $8.73 average ticket. Two movies = loss. Three movies = bigger loss. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> There was no \u201cpath to profitability.\u201d There was no \u201cdata monetization.\u201d There was just… spending $270\/month per heavy user while collecting $10. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"><b>The Gym Membership Fallacy<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> MoviePass banked on people not using the service. Like gyms. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Except: Going to the gym requires effort, time, and discomfort. Watching movies is entertainment people actually want to do. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> CEO Mitch Lowe said people would see around 10 movies per year with MoviePass. At $8.73 per ticket, that\u2019s $87.30 in costs for $119.40 in revenue ($9.95 \u00d7 12). Barely breakeven – and only if usage didn\u2019t spike. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> But when you have an unlimited debit card for movies, why wouldn\u2019t you use it? The moral hazard was obvious. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"><b>Stock Manipulation Over Business Building<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> Farnsworth and Lowe knew the $9.95 plan was a temporary marketing gimmick to grow subscribers and artificially inflate HMNY stock price. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> This wasn\u2019t about building a sustainable company. It was about pumping the stock, attracting investors, and… well, they didn\u2019t think much beyond that. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"><b>The \u201cWe\u2019ll Figure It Out Later\u201d Strategy<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> They\u2019d get big, then negotiate with theaters for discounts. They\u2019d monetize data somehow. They\u2019d find revenue streams. <\/p>\n<\/td>\n<\/tr>\n<tr>\n<td class=\"dd\" align=\"left\" style=\"padding:0px 15px;text-align:left;word-break:break-word;\">\n<p style=\"mso-line-height-alt:150.0%;\"> None of it happened. Theaters had zero incentive to give discounts to a company that was already sending them paying customers. The data play never materialized. <\/p>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td align=\"center\" valign=\"top\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td>\n<tr>\n<td class=\"b\" align=\"center\" valign=\"top\" bgcolor=\"#030712\" style=\"padding:0px 0px 0px 0px;border-style:solid;border-width: 0px 0px 0px 0px;border-color: #FFFFFF;border-bottom-left-radius:10px;border-bottom-right-radius:10px;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"top\" bgcolor=\"#030712\" style=\"padding:12px\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td><span style=\"padding-left:1px;\"><\/span><\/td>\n<td align=\"center\" valign=\"middle\" width=\"75\" style=\"width:75px;\"><a href=\"https:\/\/www.instagram.com\/buildmode.xyz\/?utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million\" style=\"text-decoration:none;\"><img loading=\"lazy\" decoding=\"async\" width=\"22\" height=\"22\" alt=\"ig\" border=\"0\" style=\"display:block;max-width:22px;color:light\" src=\"https:\/\/media.beehiiv.com\/cdn-cgi\/image\/fit=scale-down,format=auto,onerror=redirect,quality=80\/static_assets\/instagram_light.png\"\/><\/a><\/td>\n<td><span style=\"padding-left:1px;\"><\/span><\/td>\n<\/tr>\n<\/table>\n<\/td>\n<\/tr>\n<tr>\n<td height=\"10\" style=\"line-height:1px;font-size:1px;height:10px;\"> <\/td>\n<\/tr>\n<tr>\n<td class=\"w\" align=\"center\" valign=\"top\" style=\"padding:15px 15px 15px 15px;\">\n<table role=\"none\" width=\"100%\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\">\n<tr>\n<td align=\"center\" valign=\"top\">\n<p style=\"font-family:'Verdana',Geneva,sans-serif;color:#FFFFFF!important;\"> Update your email preferences or unsubscribe <a class=\"link\" href=\"https:\/\/buildmode.xyz\/subscribe\/{{subscriber_id}}\/preferences?post_id=e60f7969-0ff3-436a-af1a-f2cd83132ec2&last_resource_guid=Post%3Ae60f7969-0ff3-436a-af1a-f2cd83132ec2&utm_source=buildmode.xyz&utm_medium=newsletter&utm_campaign=the-10-unlimited-movie-pass-that-cost-303-million&last_resource_guid=Post%3Ae60f7969-0ff3-436a-af1a-f2cd83132ec2\" style=\"text-decoration:underline;text-decoration-color:#FFFFFF!important;color:#FFFFFF!important;\"> here<\/a><\/p>\n<p class=\"copyright\" style=\"font-family:'Verdana',Geneva,sans-serif;color:#FFFFFF!important;\"> © 2026 BuildMode <\/p>\n<p style=\"font-family:'Verdana',Geneva,sans-serif;color:#FFFFFF!important;\"> 2093 Philadelphia Pike<br \/>Claymont, DE 19703, United States <\/p>\n<\/td>\n<\/tr>\n<tr style=\"display: table-row !important;\">\n<td align=\"center\" valign=\"top\" style=\"padding-top:20px;\" style=\"display:table-cell !important;\">\n<table role=\"none\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" align=\"center\" style=\"display:table !important;\">\n<tr style=\"display:table-row !important;\">\n<td class=\"u\" align=\"center\" valign=\"middle\" height=\"32\" style=\"height:32px;display:table-cell !important; 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