OMG

MoviePass Says It is No longer Useless But

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Down, but not out.

Though MoviePass saw some particularly trying times over the last week, it isn’t down for the count.

MoviePass has pushed back against claims that it’s dead or even dying, citing unprecedented growth and previous examples of market disruptors as evidence of its staying power.

It claims that MoviePass use made up nearly one-fourth of the box office receipts for the film Blindspotting through the first Tuesday following its release. It also says the film Tag had MoviePass to thank for 13 percent of its opening weekend domestic box office totals.

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“Overall, we believe as much as 6 percent of the industry’s total box office receipts can be traced to our loyal subscribers,” said a MoviePass representative. “It’s clear that because of MoviePass, more people are seeing more movies at fair prices… Absent MoviePass, exhibitors are fighting to preserve profits in a declining box office environment. That’s the doomed strategy.”

MoviePass acknowledges that it’s going through a rough patch, but compares this moment in their business to early struggles that other market-disrupting companies like Uber faced.

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MoviePass began suffering widespread outages last Thursday during the release of Mission: Impossible – Fallout after running out of cash. Then, after borrowing $6.2 million to pay merchant and fulfillment processors, it continued suffering outages, and users weren’t able to bring up showtimes on its app.

After announcing that the monthly subscription would be raised to $14.95 over the following 30 days, MoviePass’ CEO Mitch Lowe issued an apology to users.

Colin Stevens is a freelance writer for IGN, and he hopes MoviePass makes a full recovery. Follow him on Twitter.

SOURCE: IGN.com

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