Yahoo Finance MoviePass Receives Investment From Comcast’s Forecast Labs (EXCLUSIVE)
MoviePass, a movie-theater subscription service that emerged from bankruptcy with its original founders at the helm, has received an equity investment from Forecast Labs, a consumer venture group that is owned by Comcast. As part of the investment, Forecast Labs will drive new customer acquisition for MoviePass through TV advertising. Comcast also owns and operates NBCUniversal. MoviePass did not reveal financial details of the investment or its structure.
MoviePass recently announced that it had been responsible for a million movies seen on its platform and also said that it had achieved the first profitable year in the company’s history. The service is rebounding after a turbulent period in its history. MoviePass became a phenomenon after it introduced a $9.95 monthly membership plan in 2017 that seemed too good to be true. That was the problem for the service, which couldn’t figure out a way to make it profitable and filed for Chapter 11 in 2020. It was reacquired by co-founder Stacy Spikes roughly a year later. Spikes was pushed out of the company he helped create shortly after selling a majority stake to Helios and Matheson, which put its founder Ted Farnsworth and Mitch Lowe, a former Netflix and Redbox executive, in charge. MoviePass’ rise, fall and reemergence was recently the subject of an HBO documentary, “MoviePass, MovieCrash.”
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The company attributes much of its recent growth to artificial intelligence and machine learning enhancements that have optimized its service and enabled customers to more easily access lower-priced showings. In an interview with Variety, Spikes said that having a Comcast-backed company invest in MoviePass was a “big vote of confidence.”
“There was a meeting of the minds,” Spikes said. “They understand how important what we are trying to do is to the movie industry in terms of trying to increase foot traffic and make moviegoing more efficient. It’s so exciting to see a major media company leaning in and affirming our vision.”
MoviePass services 3,500 locations across America across all 50 states.
“We see tremendous value in the new MoviePass model and believe that with our access to media, we have the distribution advantage to enhance the MoviePass brand and drive new membership growth,” said Arjun Kapur, managing partner at Forecast Labs, in a statement.
Spikes said MoviePass is engaged in talks with other potential investors as part of its latest funding round.
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