MoviePass Owners Claim They Are Not Dead

MoviePass has been under a lot of scrutiny after it suffered many outages last Thursday during the release of the film Mission Impossible: Fallout when it ran out of money. They borrowed $6.2 million to pay merchant and fulfillment processors. but it continued suffering outages and users were unable to use the app properly. This lead many to believe that MoviePass was soon going to shut down.

But the owners of MoviePass, Helios and Matheson Analytics Inc., struck back today by telling Business Wire via that they are not dead or even dying. They claim that unprecedented growth and previous examples of market disruptors as evidence of it’s staying power.

They go on to give examples about films that have benefited from the subscription service. First they talk about Lionsgate’s Blindspotting, which they say MoviePass contributed about one fourth of the domestic box office receipts. Also Warner Bros.’ Tag which they promoted in their app and purchases represented 13 percent of the films opening weekend domestic box office totals.

They conclude by recognizing that they are “going through a rough patch”. But it compares this moment in their business to early struggles that other market disrupting companies have faced. What are your thoughts on the MoviePass service? Will it last? Let us know in the comment section below!

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Source: Business Wire via IGN

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