MoviePass, the subscription-based movie ticket service that emerged from bankruptcy, has announced a significant investment from Forecast Labs, a consumer venture group owned by Comcast. This investment, first reported by Variety, is aimed at bolstering MoviePass’ TV advertising campaign as the company seeks to expand its subscriber base and market presence.

The financial details of the investment remain undisclosed, but the strategic move comes on the heels of MoviePass announcing its first profitable fiscal year since relaunching in early 2023. The company attributes its recent success to its AI-driven Cinematic Marketplace, which leverages algorithms to help subscribers locate and attend non-blockbuster movie screenings at various theaters.

MoviePass offers tiered subscription plans ranging from $10 to $30 per month, providing access to three to five movies each month, depending on the plan. In major markets like Southern California and New York City, subscription prices are slightly higher, ranging from $20 to $40 per month. The service has also reported a 40% increase in subscribers opting for theaters offering the same movies for fewer credits, enhancing midweek attendance by 50%.

Stacy Spikes, co-founder and CEO of MoviePass, highlighted the role of AI and machine learning in the company’s turnaround. “This investment underscores the transformative impact of our technology on the moviegoing experience, driving value for our members and increasing attendance for our theater partners,” Spikes said.

MoviePass was initially launched in 2011 by technology and entertainment entrepreneurs Stacy Spikes and Hamet Watt. In 2017, it was acquired by data company Helios and Matheson Analytics. A new $9.95 monthly plan for unlimited movies was launched, which quickly gained popularity but proved financially unsustainable, leading to bankruptcy in 2020. After being reacquired by its original founder, the company has shifted its business model to a more sustainable tiered subscription approach.

Arjun Kapur, managing partner at Forecast Labs, expressed confidence in the new MoviePass model. “We see tremendous value in the new MoviePass and believe that our media access will enhance the brand and drive new membership growth,” Kapur stated.

The recent investment from Comcast’s Forecast Labs marks a pivotal moment in MoviePass’ comeback journey. The company, which now services 3,500 locations across the United States, is also in discussions with other potential investors to secure additional funding for its expansion efforts.

INSIDER TAKE

MoviePass’ ability to secure investment from a prominent venture group like Forecast Labs is a strong validation of its revamped business model. The company’s reliance on AI and machine learning to optimize theater attendance and reduce operational costs marks a significant departure from its previous unsustainable model. By focusing on targeted advertising and strategic partnerships, MoviePass is well-positioned to capitalize on the renewed interest in theatrical experiences post-pandemic.

However, the success of the current iteration of MoviePass will heavily depend on its ability to maintain financial discipline and continue leveraging technology to offer value to subscribers without compromising profitability. While support from a media giant like Comcast provides a substantial advantage, sustained growth will require careful navigation of market dynamics and consumer preferences.

A critical consideration is consumer sentiment. With multiple relaunches and changes in business models, MoviePass may face skepticism from potential subscribers who were disappointed by its previous iterations. The key challenge will be convincing these consumers that the new MoviePass is fundamentally different and sustainable.