UPDATED with quote from former co-founder Kevin Hong: After six years, Dealflicks Inc. is calling it quits. Dubbed the “Priceline for movie tickets”, the San Francisco-based start-up sent out an email to their users Tuesday saying: “we are unable to continue to operate moving forward based on our financial situation.” The shutdown is effective immediately.
In an era where MoviePass is struggling and AMC’s subscription plan is gaining traction, Dealflicks, which started in Los Angeles and was founded by Kevin Hong and Sean Wycliffe, couldn’t gain the traction they wanted. Their goal was to partner with theaters for discounts up to 60% off of movie tickets and concessions during downtime at theaters.
Hong told Deadline that he was fired in 2016. He said he was “ousted from my own company after I believed we need to change our management team (possibly including Sean).” Hong added that he was at the company when they were up to a $7 million/year in revenue run rate before they lost their largest client Carmike Cinemas in March 2017. He has since become the Chief of Business Development for Sinemia.
Smaller theaters such as Bow Tie Cinemas and B&B Theatres jumped on the Dealflicks bandwagon, but it didn’t gain steam. It was available on only 3,000 screens out of nearly 40,000 movie screens in North America. In 2016, the struggle continued when the aforementioned Carmike, was acquired by AMC Theatres. That took away 250 theaters from the Dealflicks network. In 2017, their revenue took a hit, going from $3.7 million to $2 million.
Read the message sent to their subscribers below.
We are sad to let you know that Dealflicks is stopping our service effective immediately. This is unfortunate news for us to share as we have spent countless hours and effort over the past six years trying provide the best movie ticket deals to users across the US. However, at this time, we are unable to continue to operate moving forward based on our financial situation.
We appreciate your support and patronage over the years, and we hope that our original vision of the industry will somehow continue to move forward in our absense.
If you have any outstanding paid Dealbucks that is connected with your Dealflicks user account, please fill out this form to file a claim. We will be taking in all gift card claims for the next 30 days until 11:59pm EST on Friday September 14, 2018, and we will issue any payouts shortly thereafter once all claims have been received.
If you have any other questions, please email us at email@example.com. Please keep in mind that aspects of our website/app will be out-of-date as of now until we are able to properly update/disable the various features.
Thank you so much,