MoviePass says those cancellation bugs have been fixed

MoviePass says those cancellation bugs have been fixed

MoviePass is about to roll out its new subscription plan, which will keep prices at $9.95 while imposing a new limit of three movies per month. But it seems that the transition hasn’t been going entirely smoothly.

The Verge reports that several users have complained about previously canceling their plans, only to receive emails from the service suggesting that they were still subscribed.

We reached out to a MoviePass spokesperson, who confirmed that there were “bugs” in the cancellation process, but said they’ve since been fixed:

On Monday, August 13th, we learned that some members encountered difficulty with the cancellation process. We have fixed the bugs that were causing the issue and we have confirmed that none of our members have been opted-in or converted to the new plan without their express permission. In addition, all cancellation requests are being correctly processed and no members were being blocked from canceling their accounts. We apologize for the inconvenience and ask that any impacted members contact customer support via the MoviePass app.

The company also said that all members are being given the option to either opt in to the new plan or cancel their memberships. If someone doesn’t respond by the end of their billing cycle, their subscription will be automatically canceled.

The new plan is part of a broader effort at MoviePass to try to get the company to profitability. In addition to capping monthly tickets, the company is keeping big releases off the service for the first couple of weeks — and apparently, forcing subscribers to choose between only two movies at a given time.

Source: Mobile – Techcruch

MoviePass borrowed $5M to end yesterday’s outage

MoviePass borrowed M to end yesterday’s outage

More bad news for subscription movie ticket service MoviePass, which acknowledged yesterday that there was an unidentified issue preventing people from using their MoviePass credit cards to get tickets.

A regulatory filing from parent company Helios & Matheson offers more insight about what happened. The filing (first spotted by Business Insider) announces a “demand note” of $6.2 million, including $5 million in cash that the company borrowed. It goes on to explain:

The $5.0 million cash proceeds received from the Demand Note will be used by the Company to pay the Company’s merchant and fulfillment processors. If the Company is unable to make required payments to its merchant and fulfillment processors, the merchant and fulfillment processors may cease processing payments for MoviePass, Inc. (“MoviePass”), which would cause a MoviePass service interruption. Such a service interruption occurred on July 26, 2018.

In other words, it looks like MoviePass wasn’t able to pay one of its service providers, which led to the outage. In order to make those payments, it borrowed $5 million.

This doesn’t exactly inspire confidence in MoviePass’ finances. A Helios & Matheson filing from earlier this month suggested that the company was looking to raise up to $1.2 billion in equity and debt financing to fund MoviePass’ operations and growth.

Meanwhile, although the service is best-known for offering access to unlimited movie tickets for $9.95 per month, the specifics of the pricing model have been changing pretty frequently.

Source: Mobile – Techcruch

MoviePass’s parent company is getting crushed after offering new stock

MoviePass’s parent company is getting crushed after offering new stock

Helios and Matheson Analytics is looking to push additional capital into its prime and wildly popular asset, MoviePass, by raising money in a new stock sale that appears to be giving Wall Street fits.

Looking to raise additional capital, Helios and Matheson said it would sell up to $150 million in a stock sale that essentially seems geared to fund MoviePass’s expansion. Helios and Matheson is the largest shareholder of MoviePass, which is an increasingly popular service for going to watch movies. MoviePass’s parent company saw a sharp decline in its stock price today, with its value dropping around 40% as a result of the announcement.

“Helios and Matheson may use the net proceeds from this offering to increase the Company’s ownership stake in MoviePass or to support the operations of MoviePass and MoviePass Ventures; to satisfy a portion or all of any amounts payable in connection with previously issued convertible notes; and for general corporate purposes and transaction expenses,” the company said in the release. “The Company may also use the proceeds to make other acquisitions.”

Helios and Matheson recorded a net loss of around $150 million in 2017 (attributed to its acquisition of the majority stake in MoviePass). The company acquired a majority stake in MoviePass toward the end of last year. At the end of 2017, the company had around $25 million in cash and cash equivalents, according to their last annual report.

MoviePass allows users to spend around $10 per month to get one ticket to a movie every day, albeit with some strings attached. But it offers a way for theaters to fill seats and still acquire revenue from concessions and other products while allowing viewers to actually get in the door without paying a steep ticket price that might come with that movie.

Source: Mobile – Techcruch

MoviePass CEO proudly says the app tracks your location before and after movies

MoviePass CEO proudly says the app tracks your location before and after movies
 Everyone knew the MoviePass deal is too good to be true — and as is so often the case these days, it turns out you’re not the customer, you’re the product. And in this case they’re not even attempting to camouflage that. Mitch Lowe, the company’s CEO, told an audience at a Hollywood event that “we know all about you.” Read More

Source: Mobile – Techcruch