The cost of an average movie theater ticket in 2017: $9. 

It's not difficult to see how the MoviePass service, which allowed a subscriber to attend up to 30 days of theatrical movies for only $10 per month, could face financial problems when a subscriber attended more than one movie per month.

To stem the bleeding, the Federal Trade Commission alleges MoviePass deterred frequent customers from using its service by:

  1. Invalidating passwords by claiming “we have detected suspicious activity or potential fraud” and responding to customers weeks later,
  2. Requiring submission of the physical movie tickets for approval through an app - the app had shortcomings recognizing the submitted photos resulting in cancelled customer accounts, and
  3. Grouping "subscribers based on how often they used the service, then, once the group hit an unannounced limit, the people in the group would be unable to use the service."

As a MoviePass subscriber in 2017, I faced some challenges using the service. But I can easily say that I watched a bounty of theatrical movies that year!