To many, MoviePass was an overnight sensation whose seemingly too-good-to-be-true $9.95 monthly cost promised to revolutionize the theater industry. The allure of being able to see unlimited newly released movies for the price of a single ticket attracted a substantial number of subscribers quickly. But within the company, there were voices warning against its unsustainable growth.
Documentary Underlines Missteps
MoviePass, MovieCrash, the new HBO documentary directed by Muta Ali, is a scathing account of how MoviePass’ executives ignored numerous red flags leading up to the company’s 2020 bankruptcy filing. The film tackles the enticing yet flawed business practices that doomed an initially promising venture.
The film features interviews with former employees, investors, and analysts candidly speaking about the company’s financial woes. Director Muta Ali reintroduces us to Mitch Lowe, who transitioned from managing a regional video rental chain to working with Netflix before becoming CEO of MoviePass in 2016.
An Eerie Inspiration
Lowe recounts his lifelong passion for film, sparked by a childhood viewing of Alfred Hitchcock’s Psycho. The documentary cleverly uses clips from this 1960 classic to foreshadow Lowe’s mismanagement parallel to Norman Bates’ downward spiral.
The Rise and Fall of a Dream
Initially, MoviePass experienced a meteoric rise, heavily credited to aggressive subscriber growth and a unique pricing model. At its peak in 2017, it was common to hear enthusiastic headlines about MoviePass potentially revamping theater attendance. However, it wasn’t long before pressing financial problems brought these lofty visions crashing down.
The Real Founders Spill All
Notably, the documentary highlights significant contributions overlooked by media: Stacy Spikes and Hamet Watt co-founded MoviePass in 2011. Unfortunately, their roles were often downplayed while Lowe gained more media attention. This shift points out systemic racial biases and calls into question how differently things might have played out if Spikes’ and Watt’s longer-term visions had been given priority over short-term profitability.
A Cautionary Tale
The film critiques the relentless pursuit of exponential profits at the expense of sustainability. Hamet Watt reveals,The company played the middleman by buying movie tickets at list price, then giving them to subscribers
, highlighting its fundamental business flaws.
An Inevitable Collapse
This poor strategy led MoviePass to accumulate massive debt rapidly. Eventually, its unsustainable business model couldn’t be supported by investors willing to light piles of cash on fire in hopes of big returns.
If you followed this unfolding saga in real-time, much of MoviePass, MovieCrash will likely strike familiar chords. However, it remains detailed enough to transform what many see as a typical startup failure into a captivating docudrama.
Muta Ali delivers not just an exposé of flawed executive decisions but also spotlights broader systemic issues within tech and entertainment industries.Catch MoviePass, MovieCrash on HBO starting May 29th.
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