SALT LAKE CITY – Movie subscription service Sinemia – a top competitor of MoviePass – suddenly stopped its business in the US on Thursday night.
"We are all witnessing the future of moviegoing developing through movie photo subscriptions," Company officials wrote in a statement posted on the sinemia website. "However, we did not see a path to sustainability as an independent movie ticket subscription service in the light of competition from cinemas as they build their own subscriptions."
The statement also said that the company could not cover the costs of "Unexpected litigation" and continue to operate at the same time.
The interruption comes just before Friday's opening of the Avengers: Endgame, which is probably one of the year's biggest films.
The service started in 201
Like MoviePass, Sinemia was not a stranger to controversy.
A complaint visit, claiming that the company had hatched a bait and shift scheme for its users, was filed in November last year, according to Indiewire. The application claimed that the company lured customers with a promise of discounted movie tickets, but then added fees so that there was no discount, Indiewire indicated.
Once dominant, MoviePass had its share of problems last year. For at least one occasion, the company had no money to buy movie tickets for its customers. At the company's height, it boasted 3 million users, but that figure has dropped to just 225,000 users this month, according to Business Insider.
Although Sinemia and MoviePass are no longer viable opportunities for movie lovers, several theater companies, including AMC and Cinemark, still offer similar subscription services.
It is not clear whether subscribers in other countries where Sinemia is currently operating will be affected by Thursday's shutdown news. The company's statement does not mention any potential repayments to the users.
"We would like to thank our customers who believed in us and helped us along the way for their love and support," the statement said. "We are so grateful to have had the opportunity to share our dream with you."