Stung by negative reports about the extent of its data tracking, the chief executive of MoviePass has apologized and clarified how the movie-ticket subscription service uses the information it gains from users.
As we previously reported, the controversy started when Mitch Lowe told an audience at a Hollywood presentation that, “We know all about you” and “We get an enormous amount of information” from MoviePass subscribers. The remarks, reported first by Media Play News, set off a firestorm about user privacy and the company’s intentions.
It also raised a number of questions about the MoviePass business model. The company is currently offering a $7.95 per month subscription, allowing customers to see one film per day.
MoviePass: We’re sorry for remarks on data tracking
Months ago, major movie theater chain AMC broke with a number of other MoviePass partners by openly rejecting company’s financial plan, saying “from what we can tell, by definition and absent some other form of other compensation,” MoviePass is losing money by offering customers such a low price and therefore in danger of going out of business.
“As MoviePass is currently designed, it does not integrate well into our programs and could create significant guest experience issues,” AMC went on to say. But the row didn’t seem to affect MoviePass too negatively, as it expects to pass the 5-million member threshold by year’s end.
But what has dinged its reputation – in addition to its less-than-stellar customer service – is its data=tracking exploits. That’s why Lowe felt the need to respond to the public.
In an open letter to the MoviePass community, Lowe said, “First and foremost, I apologize for these comments and the concern they caused. At MoviePass, we take customer privacy extremely seriously. I would like to eliminate any misconceptions that we’re collecting location related data.”
He added that the company reserves the right to make adjustments on how it will use customers’ personal information. But he vowed that MoviePass will be transparent about any changes.
Is MoviePass a go…or a pass?
While the company continues to grow, its customer service woes continue to be well-documented.
As we have said before, because of the myriad problems people have been having with the app, Team Clark is not comfortable recommending MoviePass without reservations.