MoviePass crashed because it ran out of money
MoviePass faced a service outage on Thursday when the company couldn't afford to pay for users' movie tickets, CBS reports.
Parent company Helios and Matheson missed a payment to one of the companies helping finance its outrageous model. The app has been down ever since.
Helios and Matheson borrowed $5 million in cash on Friday to pay back its fulfillment provider and get the service up and running again, but at press time the app was still down.
Helios and Matheson stock plummeted after the service outage to $3.58 per stock, or nearly half of its previous standing. The number of stocks was increased earlier in the week to help boost it.
This is one of several outages MoviePass has experienced in the last several months as its user base expanded to over two million. Movie theaters and business experts have their eye on MoviePass, questioning the sustainability of its financial model and whether it will even last the summer.
Proma Khosla is a Senior Entertainment Reporter writing about all things TV, from ranking Bridgerton crushes to composer interviews and leading Mashable's stateside coverage of Bollywood and South Asian representation. You might also catch her hosting video explainers or on Mashable's TikTok and Reels, or tweeting silly thoughts from @promawhatup.
