Mitch Lowe, chief executive of MoviePass, has decided to cut off its subscribers from buying tickets to major movies as it continues to struggle financially.
At the weekend, many users were left feeling frustrated after they found they couldn’t order tickets through the app for the weekend’s biggest release, Mission Impossible – Fallout. The service previously allowed access to buy tickets to any 2D movie.
A source familiar with the matter told Business Insider that during an all-hands meeting on Monday, Lowe said the app would not make “Christopher Robin” and “The Meg” — the two major releases in the next two weeks — available to its subscribers. The source reportedly added that the chief executive implied that the practice of not offering tickets to major movies would continue for the foreseeable future.
Yesterday it was reported that MoviePass has been forced to borrow $5m to remain in service. Users experienced technical difficulties over the weekend due to the firm’s lack of money.
The owner of MoviePass, Helios and Matheson Analytics, said that it borrowed $5m in cash because the company was unable to make certain required payments, according to a Securities and Exchange Commission filing.
In addition, last week Helios and Matheson’s share price bombed after a rescue plan did little to assure investors.
Image: Helios and Matheson