MoviePass stops selling tickets to major releases
FBN's Cheryl Casone on concerns over the future of MoviePass.
Moviegoers were disappointed this weekend when they tried to use their MoviePass subscription to buy tickets to the latest Mission Impossible installment.
It also looks like that policy will stay in place going forward, according to Business Insider.
It has been reported that MoviePass CEO Mitch Lowe announced at a Monday meeting, that the app would not make available “Christopher Robin” and “The Meg” – the two major releases hitting theaters in the next two weeks.
The company is struggling financially, as its parent company Helios and Matheson Analytics, did a reverse stock split last week, bringing shares up to $14.00 from $0.09.
The service temporarily shut down on Thursday night when the company ran out of money, according to the report.
In a Securities and Exchange Commission filing, the company said it needed to borrow $5 million to get back online.
MoviePass reportedly has to pay the full ticket price for all the movies its subscribers go see, so eliminating major releases going forward means the cash-strapped company would pay millions less.
MoviePass sells subscriptions for $9.95 a month.