MoviePass couldn’t afford to pay for movie tickets on Thursday
MoviePass is on life support.
Helios and Matheson, the parent company of the popular movie subscription service, said that it had a service outage on Thursday because it couldn’t afford to pay for movie tickets. The company borrowed $5 million in cash Friday to pay its merchant and fulfillment processors, according to a regulatory filing.
Helios and Matheson missed a payment to one of its fulfillment processors, and that contractor temporarily refused to process payments for MoviePass.
Some customers complained on social media Thursday that they couldn’t use their MoviePass accounts to purchase movie tickets at theaters.
By Friday afternoon, MoviePass said that its app was “now up-and-running with stability at 100%.”
In a letter to subscribers, the company apologized for the outage.
“We ask for your understanding and vocal support during this time, as we continue to fundamentally change an industry that hasn’t evolved much in years,” it said.
Stock in Helios and Matheson, meanwhile, tanked Friday from nearly $7 at market open to $2.
The company approved a reverse stock split earlier this week to boost the price from 8 cents to $21 in an effort to keep it from falling off the Nasdaq stock exchange.
The price has been in freefall ever since. If valued at its pre-split amount, Friday’s closing price would be equivalent to less than a penny.