Former MoviePass CEO Admits $9.95 Plan Was a Gimmick

MoviePass's former CEO has admitted that the company's $9.95 unlimited subscription plan was a "temporary marketing gimmick" designed to drive subscriber growth.

Ted Farnsworth, who led MoviePass from 2016 to 2018, made the admission in a recent interview with The New York Times. He said that the company knew from the start that the plan was unsustainable and would eventually have to be raised.

MoviePass launched its $9.95 unlimited plan in 2017, and it quickly became a hit with consumers. However, the company soon ran into financial trouble as it struggled to keep up with the cost of subsidizing movie tickets. In 2018, MoviePass was forced to raise its prices and limit the number of movies that subscribers could see each month.

Farnsworth's admission that the $9.95 plan was a gimmick is likely to further damage MoviePass's reputation. The company has already been criticized for its deceptive marketing practices and its poor customer service. It is unclear whether MoviePass will be able to recover from this latest blow to its credibility.

MoviePass's rise and fall is a cautionary tale about the dangers of unsustainable business models. The company's $9.95 plan was a gimmick that was doomed to fail from the start.

MoviePass's experience should serve as a warning to other companies that are considering using unsustainable business models to drive growth. Such models may work in the short term, but they are likely to lead to financial trouble in the long run.