MoviePass, the infamous movie subscription service that collapsed in 2020, has secured new investors in its ambitious comeback attempt.
The New York-based company said Thursday it had secured an investment from Forecast Labs, a venture firm owned by Comcast Corp. MoviePass did not disclose the amount of the investment or other financial terms.
Forecast Labs plans to grow MoviePass’ subscriber base through television advertising.
“Today’s investment will accelerate our mission to bring new technology and innovation to the movie world, fueling growth and increasing attendance at cinemas,” MoviePass CEO and co-founder Stacey Spikes said in a statement.
“We also continue to invest in the development of our film marketplace to ensure studios and partner theaters get the most value by interacting directly with movie fans on the platform.”
Arjun Kapoor, managing partner at Forecast Labs, said in a statement that the venture sees “significant value” in the new MoviePass, adding that it is confident in its ability to “strengthen the brand.”
The announcement to investors comes more than four years after MoviePass filed for bankruptcy due to a lack of funding needed to sustain its arcane business model.
The service, which allowed users to pay a monthly fee to watch screenings at a variety of cinemas, began to unravel after Helios & Matheson Analytics acquired a majority stake in the company and drastically slashed its monthly fees from $30-50 to $9.95.
Despite the publicity and millions of customers it garnered, this new model seemed too good to be true, and within about three years, the stock prices of MoviePass and its owners had plummeted. MoviePass’ collapse prompted shareholder lawsuits and an investigation by the New York Attorney General’s office.
Last month, HBO released a documentary chronicling MoviePass’ rapid growth and spectacular demise.
Spikes is making a comeback after reviving the company with the backing of a cryptocurrency-focused gaming software and investment firm in 2022. Last year, the entrepreneur told The Times that he had support from 25% of cinemas and that “it’s nothing like it was before,” and seemed optimistic that other cinemas would follow suit.
“The $10 price point … was just stupid,” Spikes said at the time.
“You have no control over your costs and there is no way you can offer a subscription plan that costs less than a movie ticket….Just don’t price ‘unlimited’ at $10. Voila, you’ve averted disaster.”
Times reporter Stacey Parman contributed to this report.
