Instead, their full subscription will entitle them to no more than three trips past the velvet rope - the same number of theater visits previously offered under the company's bargain $7.95 per-month plan. In the interview, CEO Mitch Lowe said that the move, which will take effect on August 15, will cut more than 60% from MoviePass' burn rate and ease some of its pain points as it works to turn its operation around. As mentioned, there will be a new limit of three movies per month; however, MoviePass customers who want to see more films than that will receive a discount of $2 to $5 for every movie afterward. The company will also suspend "peak pricing" and "ticket verification" for customers on the new plan.
Helios and Matheson Analytics, the company behind the struggling-yet-popular MoviePass, has launched another Hail Mary in an attempt to turn a profit.
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.
"They will not be affected at all by this program, and even better, they'll stop hearing MoviePass is going out of business", Lowe told WSJ. That reverses a change announced last week that would have cut access to blockbusters within the first two weeks of release. "However, any industry-wide disruption like MoviePass requires a tremendous amount of testing, pivoting, and learning", MoviePass CEO Mitch Lowe said in a statement.
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. The stock rose 3 cents to 10 cents per share in early trading Monday, soaring over 45 percent on the new plan news. It later said it paid back that loan.