Well, the big problem with MoviePass is basically that they weren't tied to the theaters at all. When you used MoviePass to see a movie, they paid the full cash value to the theater for your ticket. They were bleeding massive amounts of money, and actually ran completely out of money and had to borrow millions to pay for tickets a few days ago.
Their plan, apparently, was half to sell memberships to people who wouldn't end up using it that much - the health insurance model - and half to amass enough of a user base and represent enough of the movie-going populace to be able to squeeze theater chains for a cut of general admissions and a cut of concessions, on the basis that they're bringing the theaters more money than they'd be costing them. They tried that with AMC earlier in the year.
It didn't work, AMC told them to screw off, and now they've got their A-List that's booming yeah.