No price hike, but new caps on MoviePass discount tix plan

Tanya Cunningham
August 7, 2018

MoviePass is cutting it short.

MoviePass announced a new subscription plan allowing subscribers to entertain themselves with a new movie everyday at the cost of just $9.95 a month just around this time past year.

MoviePass estimates that 85 percent of its current customer base of more than 3 million users will be unaffected by the shift, as its data shows only 15 percent of existing subscribers see more than four movies per month. After limiting their service away from big blockbuster movies and raising the price, MoviePass is taking all of that back-with the catch being that users of the service can only watch three movies a month.

MoviePass will reduce the number of movies its subscribers can see by 90 percent, with subscribers in the $9.95 monthly fee tier seeing their movie allowance decrease from one per day to three per month.

The company says this will allow it to create a "long-term and sustainable business model".

Under the previous plan, customers could see one movie per day in theaters. Peak pricing surcharges are also being rolled back, and the frustrating requirement for subscribers to send a photo of their purchased tickets to MoviePass will be ended. In an interview with the WSJ, CEO Mitch Lowe confirmed that the price will remain at $9.95 per month, and that there will be no two week moratorium on new releases.

The new plan will also include "many major studio first-run films".

The business model change comes after weeks of controversy for MoviePass.

MoviePass is changing up its subscription plan once again. Meanwhile, annual members will not be subject to the new three movie limit until it's time to renew their subscription.

The change replaces a previously announced plan to raise prices to $14.95 a month.

Helios and Matheson Analytics, the company behind the struggling-yet-popular MoviePass, has launched another Hail Mary in an attempt to turn a profit. Last month the MoviePass app crashed after running out of money, forcing the company to take out a $5 million emergency loan.

The stock gained 2 cents on Monday after the new plan was announced.

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