A former funder of MoviePass, Ted Farnsworth, is interested in bringing back the recently shut down subscription service.
A report from Variety says that Farnsworth has submitted an offer to buy MoviePass, along with MoviePass Films – a production company started in 2018 – and Moviefone which was also acquired by the company in 2018.
Farnsworth served as chairman and chief officer of Helios and Matheson, MoviePass’s parent company. He stepped down from these roles to avoid a conflict of interest, according to the report from Variety.
“I believe there is great unrealized value in MoviePass and we want to rebuild and make sure it reaches its full potential,” Farnsworth said in a statement. “I have always believed in the business model and the brand [former MoviePass CEO] Mitch Lowe and I built at MoviePass. There’s tremendous appetite for movie theater ticket subscription.”
Lowe and Farnsworth were behind the reorganization of MoviePass in 2017. At that time, they cut the monthly price from $50 to $9.95. The two justified the low cost believing the data gathered through the service would be profitable.
“Despite the reams of pulp fiction that have been written about MoviePass, we know what went wrong along the way and the many things that went right,“ Farnsworth continued in his statement. “After all, we built the fastest growing subscription business in the history of merchandising and numerous copycats are out there now trying to capitalize on our model in the theater industry.”
According to MoviePass’s most recent financial filing, the company has a $329.3 million net loss. Will the company turn profitable for Farnsworth? Will subscribers come back after a massive security issue? We’ll keep an eye on the future of MoviePass.
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