MoviePass just killed its signature unlimited movie plan

Adjust Comment Print

MoviePass notes that only 15 percent of members see four or more movies a month so they expect the new subscription to have no impact whatsoever on the other 85 percent of subscribers.

MoviePass is abandoning plans to increase prices. The new plan is focused on usage by the bulk of our subscribers who have historically used MoviePass to attend three movies or fewer a month.

MoviePass, the struggling movie subscription service, will limit customers to three movies per month.

More news: Mourinho decides Pogba's future after stunning Barcelona bid

Of late, MoviePass has been in the news for all the wrong reasons after it announced that it will be increasing its subscription prices and add surge pricing for popular movie tickets.

The change is part of a new model MoviePass hopes will "ensure long-term stability".

MoviePass Chief Executive Mitch Lowe said in an interview that the new policy, which takes effect August 15, will reduce the company's cash burn rate by more than 60% and make its attempted transition to profitability "more manageable". Last week, MoviePass announced subscribers would be limited to certain blockbuster film within the first two weeks of release. In the press release announcing its new plan, the company said "the new plan will include many major studio first-run films". Last month the MoviePass app crashed after running out of money, forcing the company to take out a $5 million emergency loan. Under peak pricing, subscribers faced paying up to an additional $8 for select movies.

More news: Portland Police Disperse Crowds at Patriot Prayer Event

MoviePass has shown that many moviegoers will make time to hit theaters when movies are affordable, despite more convenient options such as Netflix and video on demand. Annual subscribers "will not be affected by this plan until their renewal dates".

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. A service outage through the weekend also prevented customers from checking into theaters or seeing showtimes.

More news: MoviePass Makes a Major Change to Subscription Plan