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MoviePass Suspends Service Amid Technical Issues, Plans to Recapitalize

"Due to maintenance related issues, MoviePass services have been put on a temporary hold," the company is tweeting to disgruntled customers.

MoviePass

MoviePass

MoviePass

The holdouts still using MoviePass will find themselves out of luck this Fourth of July. Beginning on he holiday, the beleaguered movie theater subscription service announced that it will be out of commission for at least the next several weeks, citing technical issues with its app. (Via Variety.)

“Due to maintenance related issues, MoviePass services have been put on a temporary hold. Once we have resolved these technical problems, the service will be live again. We estimate this process will take several weeks. We sincerely appreciate your patience,” the company said in multiple July 3 tweets responding to disgruntled customers.

A statement obtained by Variety hinted at bigger financial issues for the company, which has been in massive decline since becoming a sensation for in 2017. In a statement about the temporary shutdown, the company said it “plans to use this time to recapitalize in order to facilitate a seamless transition and improved subscriber experience once the service continues.”

According to the company, subscribers will not be charged during MoviePass’ shutdown and will be automatically credited for the number of affected days once the service continues. In addition, MoviePass currently is not accepting new subscribers.

“There’s never a good time to have to do this,” said MoviePass CEO Mitch Lowe in a statement. “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 Aprils, Business Insider reported that subscriptions to the service had hit rock bottom with only 225,000 current subscribers, a massive decline from the over 3 million people who were using MoviePass in June 2018. The plummeting numbers were largely due to an August 2018 shift by the company to no longer allow subscribers to see one movie a day at the $9.95 per month price point. The new $9.95 plan allows users to only see three movies per month.

MoviePass announced a new plan earlier this year called “Uncapped,” which reverted back to the one-movie-a-day plan but for a price of $14.95 per month. The effort only led to 13,000 new subscribers when “Uncapped” was first announced March 19. By comparison, 100,000 subscribers signed up for MoviePass in just two days after they announced the $9.95 plan in 2017.

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