MoviePass, which relaunched in 2023, wants to gauge members’ interest in blockchain technology and how it might be incorporated into the service. The theater subscription company sent out an email on Wednesday surveying customers on web3, the concept of giving individuals ownership of their digital information by storing it on a ledger (blockchain) where only they have control over its use.
It is unclear how blockchain technology would be useful for a service that essentially functions as Netflix for movie tickets. But MoviePass raised money for its relaunch from a software company that specializes in blockchain technology, and MoviePass co-founder Stacey Spikes said in late 2022 that web3 could “[make] moviegoing more accessible and able to reach a wider audience through deeper fan engagement.”
One idea floated at the time was allowing MoviePass members to watch advertisements in its app in order to earn more credits stored in a virtual wallet which could be used towards seeing more movies, though it is unclear why blockchain is needed. Another suggestion was that users could earn some type of reward for seeing a movie, like an NFT (i.e. a commemorative movie still) that lives on the blockchain. If we are being generous, that could engender loyalty amongst members by letting them acquire exclusive digital collectibles. More cynically it seems like Spikes took the cash he could get and probably does not sincerely believe in a web3 angle. Interest in digital collectibles has largely evaporated since the pandemic.
The whole MoviePass saga feels like a lifetime ago, but it was only early this month that Ted Farnsworth, CEO of MoviePass’s former parent company, was found guilty of fraud.
MoviePass launched in 2011 but exploded in popularity in 2018 after it, led by Farnsworth’s desire to grow at all costs, began charging customers just $10 per month to see unlimited movies in theaters. Nobody was foolish enough to think the business model made any sense—even as Farnsworth and his co-conspirator at the time, Mitch Lowe, were proclaiming it would become profitable through avenues like selling customer data. As the company burned through millions of dollars paying for full-price tickets, the government alleges MoviePass turned off its app for members to try and stave losses before shutting down in 2019. In late 2022, Farnsworth and Lowe were each charged with one count of securities fraud and three counts of wire fraud for misleading investors about the viability of the business. Lowe pleaded guilty last September.
Following bankruptcy and a relaunch under Spikes, the new MoviePass allows customers to see far fewer movies—a basic $10-a-month plan allows for 1-3 screenings per month. Members are allotted credits, with movie tickets varying in price depending on the time of day and the format of the screening. At the high end, members can pay $30 to see approximately 3-5 movies per month. Maybe a good deal, but the major theater chains including AMC today have similar programs that are just as good, if not better. Theaters have pricing power that MoviePass does not.
MoviePass should just be put out of its misery at this point. Web3 and crypto have never been adopted by the mainstream for anything other than speculative gambling, and in the context of a service like MoviePass, it feels like an unnecessary attempt at capturing some of the industry’s renewed optimism brought by the new Trump administration. Some things have their moment and it is good to know when it is time to move on.
If you have not already seen it, the documentary “MoviePass, MovieCrash” on Max documents the whole rollercoaster ride that was MoviePass’s first run.
)
English (US) ·