moviepass-logo-625×352
Financier Ted Farnsworth, who was a Chief Executive for Movie Pass during their major rise, is making an attempt at revitalizing the movie subscription service.
Farnsworth stepped down from his roles with Helios and Matheson as Chairman and Chief Executive to avoid any conflicts of interest in submitting his offer. The official offer was submitted last week to purchase Helios and Matheson, which include MoviePass.
“I believe there is great unrealized value in MoviePass and we want to rebuild and make sure it reached full potential,” said Farnsworth through a release. “I have always believe in the business model and the brand Mitch Lowe and I built at MoviePass.”
MoviePass announced in 2017 that their monthly fee would be just $9.95, allowing subscribers one movie per day during the month. The monthly cost alone was cheaper than a single ticket in major market like NY or LA. Within a year, issues started to come up for Helios and Matheson as they were delisted from NASDAQ, and eventually MoviePass increased their monthly price and began restricting access to customers before ultimately shutting down.
The monthly subscription service has become a trend for movie theaters, with three chains – AMC, Regal and Cinemark, following suit and creating their own monthly subscription service for customer.
“We know what went wrong along the way and the many things that went right,” Farnsworth continued. “I believe in the companys future and look forward to regaining confidence of our members and former customers.”
Farnsworth hopes his bid is accepted and the transaction can be closed as soon as possible. Terms of the offer have not been disclosed.