Remember the days of sneaking into the movies through the exit door in the theater. A friend would buy the ticket and let all of you in to see the latest movie from Hollywood. Well, it seems Movie Pass users may have to do the same thing. Thursday, the company experienced a “Service Outage,” when in reality the company is broke.
Movie Pass in a Security and Exchange Commission filing on Friday borrowed 5 million dollars to pay its merchants and processors. The idea in borrowing the money would allow Movie Pass a chance to fix the service outage for their customers. However, it seems the 9.95 a month they were charging to sign up ultimately led to the downfall as well. The company boasts having over three million subscribers to the service.
To remedy their hemorrhaging, they are charging customers more to see blockbuster movies during peak hours. The parent company of Movie Pass, Helios, and Matheson is telling patrons to wait for a solution before jumping to conclusions.
The company finally took to social media and their own app to post the following statement:
“We are presently experiencing some technical issues with our card-based check-in process, and we are diligently working to resolve the issue. In the interim, e-ticketing is working. We apologize for your inconvenience and appreciate your patience while we resolve this issue. This message will be updated once the issue is resolved.”
The idea of Movie Pass is terrific in theory. But it seems everyone was losing on this deal. If Movie Pass as a company makes it until the end of 2018, it will be a miracle. The company did try to stop the bleeding by partnering with IHEARTRADIO, and others to offer deals. But was just looked over by new members signing up for the service. The deal was seeing the movies. Also, the company could be delisted from the NASDAQ
It is just a matter of time before we see the gif of Michael Scott from The Office yelling “I Declare Bankruptcy.”