Sinemia Inc., an app-based monthly movie theater subscription service, announced that it would shut down immediately in the U.S. 

The company was another competitor of MoviePass, which set off a revolution in Hollywood by offering a mobile app-based subscription that allowed film buffs to see unlimited releases for a low price. MoviePass relaunched its unlimited service last month after undergoing millions of dollars in losses last year as customers abused the service and attended movies repeatedly, well beyond the profit model.

Sinemia cited legal expenses and the inability to raise enough funds to continue operations, in the letter. Sinemia offered customers the ability to attend first-run movies for a monthly subscription price, with no blackout dates, at any theater and no monthly limits.

"We are all witnessing that the future of movie going is evolving through movie ticket subscriptions," the company wrote in a letter on its website. "However we didn’t see a path to sustainability as an independent movie ticket subscription service in the face of competition from movie theaters as they build their own subscriptions."

The company said the ability to cross-sell and inherent cost advantages of movie theaters have made this business difficult to compete in.

Prior to launching its unlimited service in the U.S., Sinemia operated leading subscription programs in the U.K., Turkey, Canada and Australia. At the time of the U.S. launch the company was getting 3 million global unique monthly visitors on its web and app platforms.