Bottom line: Chapter 7 is an end-game move, where a trustee is appointed to sell off assets to repay lenders, as opposed to a chapter 11 filing in which debts are restructured and business opportunities remain. MoviePass is provided for in other words with its parent company.
Movie ticket service MoviePass, and Matheson Analytics and Helios officially launched their Chapter 7 bankruptcy ticket to the towel this week.
Obviously, written for anyone who bothered to read it was on the wall well before today.
In the summer of 2017, MoviePass caught fire when the price was reduced from $50 a month to $9.95 per month. At that pace, subscribers could see a film every day–a tremendous value, even if you used it only a few times a month. It was a godsend for hardcore film buffs.
Woodwork was blamed and business model was decried as insustainable and customers were misled only. And they were right, eventually.
While it crashed, MoviePass was not a complete loss, as other people took the idea and went with it. AMC has found great success with its own subscription service, Stubs A-List, thanks to an appropriate business model and the fact that it does not have to subsidize tickets costs.