MoviePass's initial business model, promising unlimited access to movies at a low subscription fee, proved unsustainable, leading to its eventual bankruptcy in 2020.
The Justice Department accused Farnsworth and Lowe of falsely marketing MoviePass's $9.95 unlimited plan as sustainable, knowing it was a temporary tactic to lure investors.
Farnsworth accepted responsibility by pleading guilty, acknowledging his actions in misleading investors about MoviePass's financial viability and the nature of its revenue streams.
The rise and fall of MoviePass serves as a cautionary tale about the pitfalls of aggressive marketing tactics and unsustainable business models in the tech space.
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