Cinema-ticket subscription service Sinemia has closed up shop on its US operations, citing a lack of funds.
The MoviePass competitor, which advertised itself as a sustainable subscription service, said it faced “unexpected legal proceedings,” and a lack of “funds required to continue operations.”
“Today, with a heavy heart, we’re announcing that Sinemia is closing its doors and ending operations in the US,” read a notice on the company’s website. “We want to sincerely thank our customers that believed in us and helped us along the way.”
The company has been faced with several lawsuits in the past year, including a class-action lawsuit from customers stating that they had been victims of a “bait-and-switch” scheme involving hidden fees.
Its main competitor, MoviePass, also sued the Turkish company, claiming it stole patented features in its app.
“We are all witnessing that the future of moviegoing is evolving through movie ticket subscriptions,” Sinemia added.
“However, we didn’t see a path to sustainability as an independent movie ticket subscription service in the face of competition from movie theatres as they build their own subscriptions.”