Movie subscription service Sinemia is ending US operations

Over the past few months, Sinemia has gone from promising MoviePass competitor to the source of frustration for moviegoers across the country. After rumors surfaced earlier this week that it would be backing away from its troubled subscription based movie ticket offering, it’s posted official word tonight that it will be shutting down operations.

“Today, with a heavy heart, we’re announcing that Sinemia is closing its doors and ending operations in the US effective immediately,” the company writes in a statement posted to its front page.

The service has also struggled with issues of monetization (not unlike MoviePass), leading on lookers to wonder ultimately how sustainable the subscription model is. Those issues have been coupled by increased competition from movie theater chains like AMC offering up their own services, even as Sinemia attempted to create a white label version for theaters.

In recent months, the company has been plagued by lawsuits from both MoviePass and moviegoers, the latter of whom took issue with app problems, hidden charges and policies of shuttering accounts.

“While we are proud to have created a best in market service, our efforts to cover the cost of unexpected legal proceedings and raise the funds required to continue operations have not been sufficient,” the company writes. “The competition in the US market and the core economics of what it costs to deliver Sinemia’s end-to-end experience ultimately lead us to the decision of discontinuing our US operations.”

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