Sinemia May Scrap Subscription Services

Sinemia May Scrap Subscription Services

MoviePass key rival Sinemia, which launched in the U.S. last year, may shut down its movie-subscription services according to a new report at Bloomberg.

The company is reportedly coping with mounting legal costs and a backlash from consumers following its cancellation of 3% of its user accounts due to ‘misuse or fraudulent activity’ leading to complaints from customers online.

Instead, the company may shift its focus to business-to-business services with SubGen Inc., a white-label business that has created subscription plans for cinema chains such as ‘Studio Movie Grill’.

Sinemia, like MoviePass before it, has reportedly had difficulty in creating a sustainable movie-subscription service without ties to the theater chains.