Most of us probably didn’t see this one coming for MoviePass amid questions about its continued survival as it hemorrhages money: It’s opening a movie studio.
The company already has plenty of drama of its own. Its parent company recently reported that it lost $150 million last year because it bought a majority stake in MoviePass, and that it needed more funding. Then the company temporarily took away the one-movie-a-day subscriber option. Then it brought it back. Now MoviePass is going to make dramas — and more.
“Since we began disrupting the movie industry with our unprecedented low-cost movie theater subscription service, MoviePass, we have envisioned owning and developing our own studio content and using the power of our several million subscribers to bolster the success of the box office for our films,” said CEO Mitch Lowe in a statement Wednesday.
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So MoviePass has bought EFO Films’ production and library — which includes films featuring well-known names such as Robert DeNiro, Denzel Washington, Naomi Watts and Anna Kendrick — and is forming MoviePass Films to make new movies that will be distributed in theaters and online. MoviePass parent Helios and Matheson owns a 51 percent stake in MoviePass Films, while EFO Films owns 49 percent.
MoviePass subscribers can watch one movie a day at participating theaters for $9.95 a month. Right now, there’s also a $7.95 option that allows subscribers to watch three movies a month. Since the rollout of the one-movie-a-day service last summer, it has attracted more than 2 million subscribers — and some major detractors. For example, it’s in a feud with AMC Theatres and its subscribers can’t use MoviePass in some of the theater chain’s biggest locations.
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