Mitch Lowe, the former CEO of MoviePass, recently published a book, “Watch and Learn,” in which he offers business and life lessons from a self-described “Zen disruptor.” On his press tour, he has been repeatedly asked to explain why his company imploded.
He has answered that the subscription service had a good strategy, but not enough time.
“We ran out of money,” he told the “Bloomberg Businessweek” podcast.
The SEC has a different take. Late last month, it filed a fraud complaint against Lowe and Theodore Farnsworth, the CEO of parent company Helios and Matheson Analytics, stating the execs knew their business model would never be profitable, and lied about it over and over again.
MoviePass is hardly the first company to make extravagant claims about future profitability, only to…
