The company is describing the new approach as a more sustainable business model, and shareholders showed signs of relief on Monday.
The new plan will not affect annual subscribers until their plan is renewed, but monthly subscribers will be moved to the new plan after August 15.More news: Khloe Kardashian Opens up About Possibly Having More Children
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 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. But it will soon impose a cap of three movies per month, instead of one every day. It is backing away from a plan, announced just last week, to raise the price to $14.99. And it will no longer enforce ticket verification, which required users to take a picture of their ticket stub and submit it to the company as a way to stop abuse of the service.More news: Oil prices pushing higher, WTI seeking $69
The new plan will also include "many major studio first-run films", according to the company. "However, any industry-wide disruption like MoviePass requires a tremendous amount of testing, pivoting, and learning", MoviePass CEO Mitch Lowe said in a statement. MoviePass recently announced that it wouldn't be letting customers get tickets for any big release in the first two weeks of its opening, which caused a predictable backlash. "Now I realize no matter how patient investors say they will be, they never are". As of June, MoviePass's monthly cash deficit was $45 million, parent company Helios &.More news: CEO Brian France Name-Drops Donald Trump During Reported Arrest — NASCAR Rumors