It probably wasn’t the way MoviePass and Helios & Matheson imagined spending their one-year anniversary. On Tuesday, the two companies that have upended the exhibition industry with their low-cost subscription service revealed MoviePass lost an astonishing $126.6 million during the most recent fiscal quarter. (Variety)
Helios & Matheson has been hemorrhaging cash the last few months as its subscription-based movie ticketing app MoviePass struggles to identify a sustainable business model. At the same time last year, the company had reported a gross profit of $223,000. (HuffPost)
Helios & Matheson is facing two class-action lawsuits alleging investors took a bath because the company didn’t come clean about being unable to pay its bills. The company omitted and misstated its financial prospects in press releases when it touted a “sustainable” business model, the shareholders claim in lawsuits filed in Manhattan federal court. (Bloomberg)
The company said it intends to “vigorously defend” itself and believes the complaints are “without merit.” (CNNMoney)