Did you enjoy your MoviePass subscription? Did you get a lot of use out of it? Did you appropriately take advantage of it? Did you save a lot of money?
Because that MoviePass subscription may not make it through the summer. Less than two weeks after the stock price for MoviePass hit a new low — $.11 (yes, eleven cents) — the service suffered an “outage” last night, which led to a number of complaints on social media (I bore witness to several because, in the social media age, all of our inconveniences are documented).
Turns out, that wasn’t so much an “outage” as it was MoviePass running out of money. The check bounced on those transactions, so to speak, because MoviePass didn’t have any money in the bank to cover all those charges, and I suspect that last night was a heavily trafficked one because Mission Impossible — Fallout opened in theaters.
Fortunately, according to Business Insider, the MoviePass parent company was able to borrow $5 million to turn the lights back on, although why Hudson Bay Capital Management loaned MoviePass another $5 million is beyond me. Just throwing good money after bad. The stock price bottomed out at $.09 on Wednesday before MoviePass pulled a reverse stock split (a rarity), which boosted the price back up to $14 before it fell back down to $6 (basically, the reverse stock split lumped enough stocks together to equal $14, and that $14 fell to $6, which essentially means that those $.09 stocks are now worth whatever is left in your pocket after you buy penny candy with a nickel).
The way I see it, it also means that MoviePass has about $5 million to keep it afloat through the weekend, which means about 500,000 people can use it before it crashes again, and they have a The Spy Who Dumped Me early screening promotion tonight, so … I suspect they’re hanging on to dear life, hoping to make it to the middle of August, where they’ll have around a month-long window where movie attendance falls to its yearly lows. In other words, no one is rooting harder than MoviePass for The Meg to bomb on August 10th, because if there’s any movie that warrants a MoviePass purchase, it’s one where Jason Statham punches a shark.