That was quick. Just days after it was reported movie ticket subscription service Sinemia was considering closing its doors, they’ve gone ahead and done just that.
After reports of financial troubles over the last week, and changing pricing in the last few days, the company has now had to terminate all its U.S. operations today.
It was widely believed MoviePass would be the first major movie ticket subscription service to officially die, but the infamous company is still hanging in there. A statement on the Sinemia website says:
“Today, with a heavy heart, we’re announcing that Sinemia is closing its doors and ending operations in the U.S. effective immediately. We are all witnessing that the future of moviegoing is evolving through movie ticket subscriptions.
However, we didn’t see a path to sustainability as an independent movie ticket subscription service in the face of competition from movie theaters as they build their own subscriptions. Thanks to the cost advantage and cross-sell opportunities, movie theaters will be prominent in the movie ticket subscription economy.
Despite the best efforts of our team, it has been difficult for us as a start-up to continue providing our services to the moviegoers in the US without resources and enough capital to meet increased operations and legal costs.”
Sinemia has not indicated whether customers would be reimbursed, or whether it will continue to operate in other regions where it has been operating, like Australia, Turkey, and the U.K.