MoviePass to offer 3 movies a month for $10 under latest revamped plan
Struggling movie subscription service MoviePass will limit customers to three movies per month as the company tries to stay in business by burning through less cash.
Under the previous plan, customers could see one movie per day in theaters for a monthly subscription fee. The change to three movies per month takes effect August 15.
The company will keep the monthly subscription price at $9.95. It is backing away from a plan, announced just last week, to raise the price to $14.95.
The new plan will offer up to a $5 discount for any additional movie tickets, the company said, and will allow customers to get first-run tickets for major studio releases. The company will also suspend “peak pricing” and “ticket verification” for customers on the new plan.
According to MoviePass, only 15 percent of customers see four or more movies a month. As a result, the company expects the new subscription model won’t affect 85 percent of its customers.
“We discovered over several months of research that our customers value a low monthly price above nearly everything else, so we came together to create a plan that delivers what most of our loyal MoviePass fans want, and one that, we believe, will also help to stabilize our business model,” said MoviePass CEO Mitch Lowe.
Monthly subscribers will get the revamped plan when their subscriptions are up for renewal while annual subscribers won’t be affected by the change until their renewal date comes up.
The stock of MoviePass’s parent company, Helios and Matheson, closed last Friday at just 7 cents.