MoviePass latest new business model explained by top exec
Get ready to grab some popcorn.
Cash-strapped MoviePass announced a new business model that it hopes will steer it back onto the long road to profitability.
The Big Apple company is abandoning its mostly fruitless attempts to wring a cut of revenue from studios and theaters and focus instead on producing more original content for its MoviePass Films venture.
Ted Farnsworth, CEO of MoviePass parent company Helios and Matheson, tells The Post that successful MoviePass Films content will give the company access to bigger and better revenue options, including deals to sell the streaming and international rights to their movies.
“What we’ve realized with MoviePass Films is that when you sit here and you start making original content, it gives you more flexibility in the revenues you can try to drive,” Farnsworth said.
MoviePass’ more well-known subscription service is not going away. But the company wants to use it to try to boost attendance to movies it produces by MoviePass Films, Farnsworth said.
Farnsworth, who spoke exclusively with The Post, acknowledged that MoviePass, famous for once offering unlimited monthly movie passes for $10, has a way to go to regain customer trust. Over the summer it restricted customers from seeing big-budget releases like the latest “Mission: Impossible.”
“We’re not going to block out a movie to make sure you’re going to see our movie,” Farnsworth said.
“There will be different incentives to go to our movies,” he said.
It is the latest shift in strategy for MoviePass, which burst onto the scene in 2017 with its all-you-can-watch subscription service for just $10 a month.
Shares of Helios, which trades as a penny stock after its Nasdaq delisting, climbed 36.4 percent on Wednesday’s news, closing at 1.2 cents.
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