As the too-good-to-be-true moviegoing subscription service MoviePass faces competitors to its business model and continued problems generating revenue, things have taken a decidedly southern turn. Like “almost out of business” southern.
According to The Playlist, last night MoviePass users faced a barrier to using their subscription to, say, go see Tom Cruise jump out of a plane over and over again in Mission: Impossible - Fallout. That’s because the service stopped working due to a total lack of funds.
Here’s what the company’s Twitter account said about the outage:
And here’s what really went wrong: today the company’s parent corporation, Helios & Matheson, said in an SEC filing that they had to borrow $5 million just to keep their service from shutting down any more than it already had.
Here’s the full text: “The $5.0 million cash proceeds received from the Demand Note will be used by the Company to pay the Company’s merchant and fulfillment processors. If the Company is unable to make required payments to its merchant and fulfillment processors, the merchant and fulfillment processors may cease processing payments for MoviePass, Inc. (‘MoviePass’), which would cause a MoviePass service interruption. Such a service interruption occurred on July 26, 2018.”
So no, these weren’t technical issues at all. These were “you didn’t pay your bills” issues. A small cash injection to ward off creditors can only patch over these problems for so long, so if you’re a subscriber to MoviePass, you may want to be wary planning any date nights around the service.