Helios & Matheson, the parent company of movie ticket subscription service MoviePass, has been dismissing talk of any money issues the service has for several months – even as its stock price tanks and its reserves dwindle.
Now it’s getting really serious as last night MoviePass subscribers from all over the country found their attempts to go see “Mission: Impossible – Fallout” were blocked as their MoviePass app wouldn’t allow them to check-in. Business Insider reports that in an SEC filing on Friday, the company admitted they had to borrow $5 million in cash to take care of a ‘service interruption’ on Thursday.
Essentially MoviePass was unable to make required payments to credit card processors when customers use the MasterCard-backed MoviePass card to purchase tickets at theaters. Yes, they ran out of money. The filing says:
“The $5.0 million cash proceeds received from the Demand Note will be used by the Company to pay the Company’s merchant and fulfilment processors. If the Company is unable to make required payments to its merchant and fulfilment processors, the merchant and fulfilment processors may cease processing payments for MoviePass, Inc. (‘MoviePass’), which would cause a MoviePass service interruption. Such a service interruption occurred on July 26th 2018.”
Throughout last night, the subscription service tweeted that the problem was due to technical issues and they were “diligently working to resolve the issue”. ‘Fallout’ tickets reportedly were blocked at big chain theaters like AMC, Regal and Cinemark. MoviePass partner theaters such as Landmark, however, are still working.
The outage isn’t expected to have any impact on “Mission: Impossible – Fallout” sales with the film snagging a record $6 million Thursday night preview haul for Cruise.