MoviePass was in such financial straits it reportedly resorted to changing subscribers’ passwords to stop customers from ordering tickets…
MoviePass once reigned is industry, with customers paying just $10 per month for unlimited tickets. But, it’s long suffered from money issues. The cash problems became so bad, the company changed members’ passwords to keep them from ordering tickets, according to a report by Business Insider.
MoviePass Changed Subscribers’ Passwords to Prevent Customers from Ordering Tickets
MoviePass enjoyed immense popularity but its business model was not entirely sound. It had to pay theaters full price for subscribers’ tickets, causing it to hemorrhage money.
By the end of July 2018, the company lost approximately $40 million per month. On July 26th, the service ran out of money to put on MoviePass cards, according to the news report.
Just a few months earlier in April, it limited members’ access to see Avengers: Infinity War. It was allegedly at that time, company CEO Mitch Lowe also ordered a “small percentage of power users be changed.” That action would prevent customers from using their apps to order tickets.
During the weekend of July 2018, parent company Helios and Matheson reportedly borrowed $5 million in cash.
Additionally, the service made Mission: Impossible – Fallout unavailable for subscribers. This move prevented about half of its members from seeing the film on its opening weekend.
The company tried a number of changes to make the service work but ultimately suspended its operation indefinitely last month.