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

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

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

"We discovered over several months of research that our customers value a low monthly price above almost 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.

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.

MoviePass is continuing to make changes amidst its cash struggles.

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 a year ago.

Currently, MoviePass subscribers can see one movie a day for $9.95 per month. The change to three movies per month takes effect August 15. "Additionally, the new plan addresses past misuses which imposed undue costs on the system, including ticket scalping, unauthorized card usage and other activities", continued the official statement, "which in the past necessitated the use of certain remedial measures that have sometimes been inconvenient for our subscribers". Because MoviePass typically pays theaters the full cost of tickets - $15 or more in big cities - a single movie can put the service in the red. Last month the MoviePass app crashed after running out of money, forcing the company to take out a $5 million emergency loan.

For the last many weeks, MoviePass customers have been annoyed by the many changes to the service, to say the least. Stock for its parent company, Helios & Matheson, is now at a little under $0.10 per share-a month ago it was over $47.

Early Monday morning, Moviepass announced that it's killing the unlimited movie plan that saw it rocket to fame and financial ruin.

The company's most recent announcement will help create "long-term stability", according to the release.