The subscription-based service known as MoviePass has made a big impact on moviegoers
The service allows customers to see a movie in theaters daily for around $10 a month
The seemingly impossible deal allows for more than two dozen tickets at the monthly price of half of one
But it now appears to be running out of magic... and money.
Parent company Helios & Matheson reports that MoviePass is down to $15.5 million in cash
This comes at a time when it?s burning through around $21.7 million a month.
Investors appear to be seriously spooked by the numbers, with shares of the company plummeting 32%.
At this rate MoviePass has two months before it starts going into the red without raising additional funding.
The company hoped to reach a critical mass of moviegoers allowing it to make deals with theater chains
But theater chains were making the same amount of money per ticket, at MoviePass? expense.
The strategy boiled down to redistributing investors? money to theater-goers to build goodwill.
MoviePass has tried to cut expenses, limiting customers, cutting off some franchises, and restricting specific films.
But whether the company will squeak through remains to be seen.
09-05-2018 - Vidéo