How Racial Prejudice Derailed the MoviePass Dream
HBO's documentary "MoviePass, MovieCrash" explores the untold story of MoviePass, revealing the systemic biases and obstacles that undermined the success of its Black co-founders.
The Facts:
In 2017, the launch of MoviePass, a subscription-based movie ticketing service, caused a stir in the entertainment industry. The concept was simple: for a monthly fee of $9.95, subscribers could watch one movie per day, which was significantly lower than the standard ticket price. This innovative approach promised to redefine the moviegoing experience, attracting both film enthusiasts and investors alike. The company's subscriber base exploded, and its stock soared, as people rushed to take advantage of the seemingly too-good-to-be-true offer.
However, the success was short-lived, as MoviePass encountered significant financial challenges, ultimately leading to its demise in 2019. The new HBO documentary "MoviePass, MovieCrash" sheds light on the inner workings of the company and the factors that contributed to its downfall.
(MoviePass, MovieCrash | Official Trailer | HBO)
The documentary features interviews with the co-founders, Spikes and Hamet Watt, who created MoviePass in 2011, as well as key figures like Mitch Lowe, who was brought on as CEO at the behest of investors, and Ted Farnsworth, the CEO of Helios and Matheson, the analytics firm that acquired a majority stake in the company. In the news coverage of MoviePass' rise and fall, Spikes' and Watt's roles at the company were often downplayed, while Lowe was trotted out as the company's face. The documentary reveals that Spikes and Watt had concerns about the sustainability of the new business model implemented by Lowe and Farnsworth, who slashed the subscription price to drive rapid growth. The documentary reveals that Stacy Spikes, warned the both Low and Farnsworth, about the company unpreparedness in maintaining pace of their operations tell them “learning how to build the plane in mid-flight and changing it from a crop duster to a 747."
Despite their objections, Spikes and Watt were later removed from their roles at the company, a move that Spikes described as "breaking my heart to see two Black founders create a company the way we did – and then all of a sudden there was an all-white board." The documentary also explores the racial biases that Spikes and Watt faced in securing funding for their startup, as the entertainment and tech industries were often reluctant to invest in and trust Black founders. This dynamic is further highlighted in the interview with Mitch Lowe, where the director, Muta'Ali, enlisted a white producer, Archie Gips, to conduct the interview, as he was concerned that Lowe might be more inclined to give more "comfortable" answers to a Black interviewer.
After their ouster, Spikes and Watt were forced to watch from the sidelines as their company went off the rails under the leadership of Lowe and Farnsworth. The documentary's timing was fortuitous, as Lowe and Farnsworth were later accused and indicted on securities fraud charges by the SEC for allegedly deceiving investors about MoviePass' business model. Despite the setback, Spikes has since bought the MoviePass brand out of bankruptcy and relaunched it in 2022, with the goal of reviving the concept with a more sustainable business model. The documentary suggests that if Spikes and Watt's long-term vision had been prioritized over the pursuit of exponential growth and profit, the outcome might have been different.
The View:
"MoviePass, MovieCrash" offers a thought-provoking examination of the systemic biases and challenges faced by Black entrepreneurs in the entertainment and technology industries. In the case of Stacy Spikes and Hamet Watt, co-founders of MoviePass, these obstacles ultimately led to their removal from the company they had built.
The documentary sheds light on the fact that the failure of MoviePass was not simply a case of a failed startup, but rather a result of an unsustainable business model. The co-founders had meticulously crafted a plan, yet their vision was overshadowed by the actions of the "all-white board" that removed them from their roles after key investors brought in Mitch Lowe as CEO. This story of Black entrepreneurs being pushed aside by white executives is, sadly, a familiar one. The documentary highlights the stark contrast between the resources and freedom given to white, male executives to "move fast and break things," and the care and thought that went into creating MoviePass by the co-founders. This disparity highlights the systemic biases that often hinder the success of minority-led ventures.
The documentary emphasizes that the downfall of MoviePass is not an isolated incident, but rather a common story of C-suite executives prioritizing growth and profit over the long-term existence of the company. This short-sighted approach often comes at the expense of the original vision and the hard work of the company's founders. Ultimately, the documentary "MoviePass, MovieCrash" serves as a powerful testament to the challenges faced by Black entrepreneurs in the entertainment and technology industries. It sheds light on the systemic biases and the stark contrast in the treatment of white and minority-led ventures, ultimately underscoring the need for a more inclusive and equitable ecosystem in these sectors.
The documentary also highlights the significant role that institutional funding and venture capital play in the success or failure of minority-led startups. The disproportionate access to capital and resources for white-led ventures compared to minority-led ones is a persistent issue that often determines the trajectory of these businesses. This underscores the need for greater diversity and representation in the decision-making processes of investment firms and funding institutions.
Furthermore, the documentary examines the lack of mentorship and support networks available for Black entrepreneurs in the tech and entertainment industries. The co-founders of MoviePass faced challenges in navigating the complex landscape, which was often dominated by white counterparts with established connections and industry knowledge. This points to the critical importance of creating inclusive and supportive environments for minority entrepreneurs to thrive.
Overall, "MoviePass, MovieCrash" is a powerful and timely exploration of the systemic barriers that hinder the success of Black entrepreneurs. By shedding light on these issues, the documentary serves as a call to action for a more equitable and inclusive ecosystem in the entertainment and technology industries, where all founders, regardless of their background, can have an equal opportunity.
TLDR:
The launch of MoviePass, a subscription-based movie ticketing service, caused a stir in the entertainment industry, but its success was short-lived.
The documentary "MoviePass, MovieCrash" reveals the inner workings of the company and the factors that contributed to its downfall.
The co-founders, Stacy Spikes and Hamet Watt, faced significant challenges in securing funding and maintaining control of their company due to racial biases.
Despite their objections, Spikes and Watt were later removed from their roles at the company, which was taken over by an "all-white board."
The documentary highlights the systemic biases and the stark contrast in the treatment of white and minority-led ventures in the entertainment and technology industries.
The failure of MoviePass was not simply a case of a failed startup, but rather a result of an unsustainable business model that prioritized growth and profit over the long-term vision of the co-founders.
The documentary serves as a call to action for a more equitable and inclusive ecosystem in the entertainment and technology industries, where all founders, regardless of their background, can have an equal opportunity to succeed.
Insights From
MoviePass, MovieCrash | Official Trailer | HBO - Youtube
MoviePass, MovieCrash review: a damning account of corporate greed - The Verge
'MoviePass, MovieCrash': Stacy Spikes on Mitch Lowe and Racial Bias - Variety