MoviePass bought out of bankruptcy by co-founder

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In short: MoviePass, the ill-fated movie ticket subscription service that went bankrupt after launching an unsustainable membership program, is predicting a comeback. With the right strategy and the right business model, could MoviePass be successful the second time around?

The startup was founded in 2011, but didn’t make waves until mid-2017, when it slashed its monthly subscription rate to $ 9.95 per month. The plan allowed members to watch one movie per day at any movie theater in the United States that accepted debit cards, which was pretty much all. 3D and IMAX screenings were ruled out, but other than that it was fair game with no ban date to speak of.

It was an exceptionally good deal – too good, in fact. The company’s business model was simply not sustainable and despite efforts to restructure and keep afloat, MoviePass and its parent company ultimately filed for Chapter 7 bankruptcy.

Almost two years later, the outfit is making a comeback.

Initiated reports that co-founder Stacy Spikes was recently granted ownership of the company by a judge in the Bankruptcy Court for the Southern District of New York. Spikes told the post that he is excited to get the asset back and is exploring the possibility of relaunching it soon. Notably, customer data and previous email addresses were not part of the sale.

The financial terms of the acquisition in bankruptcy were not shared, although the new owner said his bid was below the minimum of $ 250,000 set by a trustee overseeing the bankruptcy.

Spikes has set up a new website for MoviePass where interested parties can register their email address to be notified of the launch of the service, possibly as early as next year.

Image credit Erik Witsoe, Pixabay



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