Independent Auditor Says There’s “Substantial Doubt” About The Future Of MoviePass

The Playlist | 4/18/2018 | Charles Barfield
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MoviePass wants to revolutionize the theater-going experience. With its subscription service, film fans can pay $9.95 a month and have the ability to go see one movie per day at almost any theater. With the rising cost of movie tickets, this is an incredible deal for consumers. However, many critics point out how the company will just continue to lose money.

Well, those critics are now going to have a little more ammunition against MoviePass.

Audit - Rosenberg - Rich - Baker - Berman

In an independent financial audit by Rosenberg Rich Baker Berman & Co., the subscription service isn’t given a glowing review. The audit claims (via Variety) that Helios & Matheson (the subscription service’s parent company) “has suffered recurring losses from operations and negative cash flows from operating activities,” adding that “this raises substantial doubt about the company’s ability to continue as a going concern.”

The terms “substantial doubt” and “going concern” are definitely not what the subscription service wants people to think about the future of their company. But let’s be honest, this was bound to happen. On paper, the theater-subscription model doesn’t make sense. With charging under $10 a month, MoviePass is losing money the first...
(Excerpt) Read more at: The Playlist
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