How far can MoviePass fall?
Stock in Helios and Matheson (, the dad or mum firm of the film subscription service, plunged greater than 50% Monday amid new experiences that clients have been having issues with the app, which prices $10 per 30 days for the power to see a film daily. )
The stock fell as little as 98 cents a share Monday, elevating new issues that it may ultimately be delisted from the Nasdaq stock trade.
That’s precisely the issue the corporate tried to keep away from final week when it accepted a 250-for-1 reverse stock cut up, which boosted the worth from eight cents a share to $21. The final a number of days of buying and selling have primarily wiped away that beauty enchancment.
Helios and Matheson’s issues bought even worse final Friday, when it borrowed $5 million in money to pay its service provider and achievement processors. It took out the mortgage due to a service outage Thursday that left MoviePass unable to pay for film tickets, in keeping with a regulatory submitting.
The service was back up by Friday afternoon, however struggled once more with issues this weekend. MoviePass tweeted late Saturday that some customers had reported points checking in, including that it was “working towards a fix on this technical issue.” E-ticketing stays useful, in keeping with the service.
Some customers reported extra complaints, together with the shortcoming to get tickets for “Mission: Impossible — Fallout,” the weekend’s greatest film opening.
On Twitter, MoviePass told one customer that the “Mission: Impossible” film could be out there at theaters that use its e-ticketing service. The firm added that the film “will also be available at some point in theaters during its theatrical run and without peak pricing depending on demand.”
The firm’s “peak pricing” mannequin has additionally been criticized by customers. When surge pricing was introduced final month, MoviePass advised customers that they might be requested to pay a “small additional fee” to see motion pictures that have been in excessive demand.
Some clients, nevertheless, have reported further prices of as a lot as $eight on motion pictures — practically as a lot as the price of the service’s month-to-month base value.
CNNMoney (New York) First printed July 30, 2018: 1:08 PM ET