MoviePass Rival Sinemia Considers Ending Its Subscription Service

  • Company may focus on building platforms for movie theaters
  • Service’s struggles follow similar issues at ailing MoviePass

Audience members wear 3D glasses while watching a movie at a theater in Chattanooga, Tennessee.

Photographer: Luke Sharrett/Bloomberg

Sinemia Inc., a MoviePass rival that launched in the U.S. last year, may shutter its movie-subscription services and focus instead on building membership programs for cinema chains, people familiar with the situation said.

The company is considering the step as it copes with mounting legal costs and a backlash from consumers. Sinemia said last month that it canceled 3 percent of its user accounts due to “misuse or fraudulent activity” and that it would issue refunds to those members. That led to complaints from customers online.