Published: Tue, August 07, 2018
Culture | By Jeremy Gray

MoviePass will limit everyone to 3 movies a month

MoviePass will limit everyone to 3 movies a month

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. According to MoviePass, only 15 percent of its members see four or more movies per month, so the service is expecting the adjusted model to have little effect on the majority of its users.

"We have heard our MoviePass community and we will not be raising prices to $14.95 a month", they added.

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

The new plan will grant users access to up to three movies a month and up to a $5.00 discount for any additional tickets, all for $9.95 per month.

MoviePass, which generally pays movie theaters full price for each ticket while only charging users their subscription fee, has been struggling financially in recent months.

The Wall Street Journal detailed the changes, with the planned price increase to $14.95 a month being abandoned in favor of the service's standard price of $9.95 a month.

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MoviePass is about to get a lot less appealing, with changes later in August that will limit every subscriber to just three movies per month. Also eliminated are peak pricing and ticket verification. Last week, MoviePass announced subscribers would be limited to certain blockbuster film within the first two weeks of release.

MoviePass is continuing to alter its business plan in attempt to keep the company afloat, but the latest announcement is a dramatic change to what made the company so enticing for moviegoers.

Even with the sharp cut in member benefits, there is no guarantee that MoviePass will be able to survive. In the press release announcing its new plan, the company said "the new plan will include many major studio first-run films".

The app suffered a minor meltdown last month when Helios & Matheson ran low on cash, causing the app to stop working.

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

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