SALT LAKE CITY — MoviePass CEO Mitch Lowe said his company is set to break even in the near future, according to BuzzFeed News.
MoviePass, which offers a movie ticket per day for about $10 a month, has faced tremendous criticism since its inception as critics have worried the company won’t make enough money over the long haul to stay in business.
But Lowe told BuzzFeed News in a recent interview that the company is on track to break even by the end of 2018.
Or, at the very least, lose only $1 per customer.
He said the company plans to add a “night at the movies” concept, too, which would include a payment system where users could attach their debit card to their app in order to pay for food and events at restaurants and other locations.
“Since we know the theater that you’ll watch a movie at, we know the cafés and restaurants around you that have offers,” said Lowe. “Or we know you love comedies, so we’ll promote, on behalf of a studio, a comedy we think you might like. Every one of these has an opt-out component. The idea is to make it more valuable to use our service as your guide.”
MoviePass’ parent company, Helios and Matheson, hasn’t been shy of its financial needs. The company said earlier in July that it needs about $1.2 billion to stay in business, according to the Deseret News.
HMNY previously said it spent $21.7 million on MoviePass per month.
MoviePass said it had 3 million paid subscribers last month. The company hopes to have 5 million subscribers by the end of the year.
Such features as peak pricing, a potential family plan and bring-a-friend options will help the company earn more money on a per customer basis, the Deseret News reported.Comment on this story
MoviePass also purchased the Oasis Films movie production company. The company will invest in films and encourage app users to see those films. Such a process did not pay off earlier this summer when Oasis Films’ “Gotti” flopped at the box office.
MoviePass hasn’t been without its flaws, though. The company recently experienced several technical glitches that made the experience less enjoyable for users. In fact, one technical bug made it impossible for users to cancel their subscription using the MoviePass app, the company told the Deseret News.