MoviePass is experiencing 'technical' difficulties again, days after it ran out of money and had to borrow $5 million in cash

Paramount‘Mission: Impossible — Fallout’ hit theatres this weekend.
  • MoviePass is experiencing technical difficulties, as many users complained Saturday evening that there were issues with checking in on the app and purchasing a ticket on their MoviePass card.
  • MoviePass, which borrowed $US6 million days ago, acknowledged the issue and said it is working on fixing it.
  • MoviePass is also still charging users surge prices for films that have been out for weeks, or are not showing at peak times.
  • Customers are worried that this is the end of MoviePass.

MoviePass is having quite a week. On Saturday evening, many users experienced technical difficulties when trying to purchase their tickets at movie theatres. This same issue surfaced Thursday, and it was because MoviePass ran out of money.

In a Securities and Exchange Commission filing on Friday, the owner of MoviePass,Helios and Matheson Analytics, said that it borrowed $US5 million in cash following Thursday’s “service interruption” because the company was unable to make certain required payments.

“The $US5.0 million cash proceeds received from the Demand Note will be used by the Company to pay the Company’s merchant and fulfillment processors,” the filing said. “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.”

According to the filing, Helios and Matheson borrowed the money from Hudson Bay Capital Management. The total demand note was for $US6.2 million, “which includes $US5.0 million in cash borrowed by the Company from the Holder and $US1.2 million of original issue discount,” it said.

On Saturday night, after similar complaints of the app and cards not working, MoviePass said in a tweet that it is “working towards a fix on this technical issue. In the meantime, all e-ticketing remains fully functional.”

This has users worried considering what happened at the end of the week, and that the service is applying its newly introduced peak pricing to empty showings and films like “Ocean’s 8,” that have been in theatres for weeks.

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