CNN reports the company ran out of money to pay for customers’ tickets on Thursday night, resulting in a service outage wherein cardholders complained they were unable to purchase tickets with their accounts. Helios and Matheson, the parent company of MoviePass, said that it had missed a payment to one of its fulfillment processors, thereby triggering that company temporarily suspending payments to the subscription service. And yes, you and I are accidentally (or regrettably necessarily) late on payments all the time, but it’s a little different when a company runs out of money to meet its ability to, you know, keep functioning as a company. Who would’ve thought suddenly charging customers more to see a movie during peak hours wouldn’t single-handedly leave you flush with cash?
Helios and Matheson suggest customers wait to hear about a resolution, though in the meantime they can continue to use e-ticketing for purchases, which has apparently not been affected by the outage. MoviePass’ stock dropped by roughly half its value this morning—and given the company pulled a reverse stock split earlier this week to keep stock prices high enough to avoid being pulled off the Nasdaq, that means the pre-reverse split value of a share of MoviePass is currently worth roughly 1.5 cents.
