MoviePass users were unhappy last weekend as problems plagued the branch subscription service and many eager moviegoers were on the run.
Following a service outage on Thursday night, MoviePass parent Helios and Matheson Analytics Inc.
said in a Friday that the filing of the securities was due to the inability to "make payments to its trader and fulfillment processors," users complained of further Problems during the Saturday and Sunday.
MoviePass apologized to its customers on Twitter on Thursday and on Friday for solving service issues. But over the weekend, users once again had problems flooding the company's Twitter account with complaints about their e-ticketing and check-in issues.
He could not check in this morning. ?
̵1; Beatrice (@ bchow210) July 29, 2018
– Healthy goals now (@bernniealic) July 29, 2018
I'm here with my daughter and can not check in If I pay for a ticket, will you refund me?
– Rick Bray (@AceMcKilty) July 29, 2018
The users were particularly upset because they were unable to watch "Mission: Impossible – Fallout," which was released last weekend. According to "MoviePass", "Fallout" was only available in a few e-ticketing cinemas.
As we evolve the service, certain movies are not always immediately available in every movie theater on our platform. Mission Impossible will continue to be available in our e-ticketing cinemas.
– MoviePass (@MoviePass) July 30, 2018
For many, the weekend service editions along with surcharges for some popular movies were the last straw. Users threatened to cancel their subscriptions and went elsewhere, some cited specifically AMCs
Stubs A-List, a more expensive option that allows subscribers to watch up to three movies per week for $ 19.95, but pay no peak.
– Austin Reynolds (@ReynoldsAustin) July 29, 2018
Time to move to Amc Alist
– Adam Zawacki (@Zawexcell) July 30, 2018
A Helios and Matheson spokesman declined to comment on subscriber issues at the weekend to express.
Earlier this month, MoviePass introduced "Top Pricing," which charges users an additional fee for popular movies and airtime. "You can avoid the extra charge by choosing a different showtime or movie," MoviePass wrote in its original announcement to users.
Peak Pricing is MoviePass' attempt to break even, said Research Analyst Michael Pachter of Wedbush Securities, but users are not happy with it.
Like, what is also the point pic.twitter.com/wbxlTpMVau
– Veronica Ulicny (@veronicaulicny) July 29, 2018
@MoviePass for what opinion of the user is value, peak / surge pricing is ridiculous. Not what I was promised when I registered.
– lara coleman (@larational) July 30, 2018
Even shareholders are unhappy. Helios and Matheson's shares fell 100% last year and carried out a 1: 250 reverse stock split last Tuesday, changing the company's share price from 8 cents to 21.25 USD. Analysts saw the move as a way to keep the company from delisting because, according to Nasdaq rules, a company is in danger of being taken off the stock market when it trades below $ 1 on 30 consecutive days. But on Monday, the stock was trading at just $ 1.06 per share.
Helios and Matheson have struggled to stay afloat over the past year, and the company is using ever-more-expensive loans to secure cash. On Friday, the MoviePass parent raised $ 6.2 million in expensive credit from Hudson Bay Capital Management, under which he paid $ 1.2 million to receive $ 5 million in cash. Helios and Matheson also agreed to pay default interest of 15% of annualized interest after a default and repay the debt at a steep 130% discount. The terms of the loan are strict; Hudson Bay may require payment of half of the loan amount on the 1st of August and the remainder on the 5th of August.
But investors are not convinced that the loan will affect the continued existence of the company. "How long is it going to take?" Said tenants and referred to the borrowed money. In an April announcement, the company said its average cash shortage was $ 21.7 million per month from September through April. In a June announcement, the company said it had only $ 18.5 million in cash available at the end of May and its monthly cash deficit increased.