MoviePass is hoping its sequel will do better than its box-office failure in 2018.
MoviePass co-founder Stacy Spikes was granted Monday ownership of his company by a Southern District of New York bankruptcy court judge. The movie theater subscription service is now exploring a return in the near future. Spikes hopes to relaunch MoviePass in 2022 and has already created a website for the relaunch.
“I can confirm that we acquired MoviePass out of bankruptcy on Wednesday,” Spikes told Insider. “We are thrilled to have it back and are exploring the possibility of relaunching soon.”
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MoviePass was founded by Spikes with partner Hamet Watt in 2011, offering film buffs a subscription service that allowed them to pay a flat fee once a month in exchange for a select number of movie tickets.
The company struggled to attract enough audience to make it profitable. It was later acquired by Theodore Farnsworth, the CEO of Helios and Matheson. Farnsworth had a questionable legal history and adopted a pricing methodology that cost the company more than it made.
The company launched a $9.95 subscription service in 2018 that gave users access to unlimited movies. This pricing decision was discouraged by Spikes, who had previously charged $50 a month in some markets. Farnsworth fired Spikes that same month.
MoviePass soon attracted an assortment of controversies and legal fights. Customers were unable to receive refunds, and the unlimited plan disappeared for a time. This led to a steady decline in its subscription base.
After years of controversy, MoviePass filed for bankruptcy in 2020.
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In June, Farnsworth and his business partner, Mitchell Lowe, agreed to settle Federal Trade Commission allegations that the company blocked customers from using the service as advertised and failed to secure subscribers’ private data.
The Washington Examiner was unable to reach Spikes for comment.
