Apparently, MoviePass Ran Out Of Money Last Night For A Hot Second

Confidence has been waning for MoviePass for a while, with investors and industry insiders expressing doubt that their business model is one that could actually survive long-term. Meanwhile, you had people like me praising the ingenuity and value to consumers their service provided (unlimited movies for $9.99 a month).

Well, it looks like people like me may be dead wrong, as it looks like MoviePass is continuing to find themselves fighting an uphill battle. In the latest episode of this Silicon Valley-like saga, it turns out that last night the company ran out of money, leading to an outage that didn’t go unnoticed by their users.

RELATED – MoviePass Stocks Take A Plunge

As noted by Business Insider, the company’s parent, Helios and Matheson Analyitics, disclosed the following in a Securities and Exchange Commission filing:

“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.”

This means that a severe lack of fundage was responsible for the outage and that the company borrowed $5 million to bring it back up. As of this morning, many MoviePass subscribers weren’t able to use the full functionality of the app.

Is MoviePass further showing that it’s on borrowed time, or will this just be another bump in the road for them? Let us know your thoughts down below!

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SOURCE: Business Insider

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