MoviePass outages send stock plunging
MoviePass users may be wondering if the subscription-movie service's final credits are rolling after more outages foiled customers on Monday and sent investors heading for the exits.
The latest disruptions come after some MoviePass customers were barred from theaters on Thursday, which parent company Helios & Matheson at the time blamed on glitches with its card-based check-in process. On Friday, the technology services company warned that a cash crunch would result in a service interruption.
Monday's troubles send shares of Helios & Matheson tumbling 60 percent, to 80 cents.
MoviePass subscribers pay $9.95 a month to watch a film daily in a theater. But that hasn't proved to be a money-making business model, prompting MoviePass to start charging an extra fee for popular movies.
In the meantime, MoviePass customers may be restricted from using the pass to see big releases, according to Business Insider. MoviePass CEO Mitch Lowe reportedly told employees in an all-hands meeting that the app wouldn't include access to "Christopher Robin" or "The Meg" for its customers.
Some MoviePass customers reported on social media that they were blocked from using the service to buy tickets for "Mission Impossible."
Blocking the popular movies from MoviePass could help reduce the costs for the business, since the company pays full price for every admission.
