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MoviePass drops price but limits subscribers to three movies a month
07 August 2018, 02:25 | Elsie Buchanan
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The catch though is that MoviePass will now limit you to just three movies per month. "Additionally, the new plan addresses past misuses which imposed undue costs on the system, including ticket scalping, unauthorized card usage and other activities, which in the past necessitated the use of certain remedial measures that have sometimes been inconvenient for our subscribers".
MoviePass announcedMonday that it's slashing its offer to subscribers as the movie ticketing company deals with major financial woes.
Monday's announcement does not specify limitations on titles, though it does confirm the new plan "will include many major studio first-run film" when changes take effect with renewals on or after August 15.
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"Because only 15 percent of MoviePass members see four or more movies a month, we expect that the new subscription model will have no impact whatsoever on over 85 percent of our subscribers", MoviePass said in a press release.
MoviePass, which pays theaters the full price of a ticket while charging only a monthly fee to users, depends on more people paying for the service than using it. "While most of our loyal subscribers shared the passion for this new accessible movie experience and experimented fairly, the fact is that a small number have used our business model to a point where it was compromising the business' long-term stability". Also eliminated are peak pricing and ticket verification.
After several outages in the last few weeks that many say was linked to lack of cash, MoviePass has been looking at ways to become more profitable.
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The move, a 90 percent drop from its current movie-a-day policy, is aimed at reducing the amount of cash the company burns through each month. Last month MoviePass simply ran out of money, requiring an emergency $5 million loan to even remain in service. HMNY's stock has lost virtually all of its value in recent months and is now a so-called "penny stock".
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