Struggling cinema subscription service provider MoviePass has announced it will be suspending its service for the next few weeks, citing technical issues and unexplained app updates.
The company, in announcing the temporary shutdown, said that it “plans to use this time to recapitalise in order to facilitate a seamless transition and improved subscriber experience once the service continues.”
The MoviePass hiatus started yesterday (Thursday), with the firm saying the suspension is due to “maintenance-related issues.” It didn’t provide details on what the problems are or how the new MoviePass app will be enhanced.
MoviePass said in a tweet on Wednesday: “Once we have resolved these technical problems, the service will be live again. We estimate this process will take several weeks.”
Subscribers will not be charged for the months the app is down, and will be automatically credited for the number of affected days once the service continues, according to the company. In addition, MoviePass currently is not accepting new subscribers.
MoviePass chief executive Mitch Lowe said: “There’s never a good time to have to do this. But to complete the improved version of our app, one that we believe will provide a much better experience for our subscribers, it has to be done.”
In March, the firm’s parent company Helios and Matheson Analytics raised $6m (£4.5m/€5.3m) in a round of financing, and said it would use the net proceeds to accelerate MoviePass’ product development, “fine tune” its subscription technology, and increase MoviePass Films’ investment in new films.
Helios and Matheson’s net loss more than doubled in 2018, to $329.3 million, on revenue of $232.3 million, according to its latest financial filing from May 2019.
The company took a $38.5m write-down for the third quarter of 2018 related to the impairment of goodwill in the MoviePass business, and it said it expects to record an impairment charge of $35.9m for Q4 for MoviePass.
Image: Pixabay
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