The statement seems to indicate that Red Sparrow was chosen at random, just to see what would happen if the movie wasn’t available to users.
According to Deadline, regions like Washington D.C. and Southern California were impacted by the Red Sparrow blackout, though apparently, not every theater in Los Angeles had the film blocked, so if you were lucky, or if you were willing to drive, you could still use your MoviePass.
How far might users be willing to travel to get to a theater that is showing the film?