The embattled subscription service MoviePass is making yet another change, this time to the number of movies customers can see each month.
MoviePass chief executive Mitch Lowe told the Wall Street Journal that the days of using the service to watch one movie every day for just one price each month are coming to an end. As of August 15, users will be limited to three movies each month, a move designed to save the company money and help make the transition to profitability “more manageable.”
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According to Lowe, most MoviePass subscribers used the service to see three or fewer movies each month and, coupled with the service abandoning the proposed fee increase to $14.95 month from $9.95, will be a benefit for subscribers.
“They will not be affected at all by this program, and even better, they’ll stop hearing MoviePass is going out of business,” Lowe said.
The service going under is something that has been buzzed about among users and social media in recent weeks. Last month, customers using MoviePass were hit with a temporary suspension of the service after the company’s long-rumored cash-flow problems finally caught up with them. MoviePass had to borrow $5 million to cover the cost of movie tickets and get its payment processing services back on line post-outage.
The injection of cash got the service back up and running, but the company soon announced major changes to the service in an attempt to stay afloat, including an increase to the monthly subscription cost, as well as restrictions on the options moviegoers have for what films they can see. The service planned to limit first-run movies that open in more than 1,000 screens during their first few weeks, which means viewing the biggest new releases would be impossible through MoviePass right away. The service also added so-called “peak pricing” in early July on popular films, a move that angered customers.
Now, with the new limitations on the service, those changes have been abandoned. However, Lowe said that the service is adding a benefit for moviegoers who use the service for more than the allotted three movies each month. Subscribers using the service to purchase tickets beyond the three will receive a $2 to $5 discount per ticket through the app. Lowe hopes these changes will indicate that they have things fully figured out.
“We’ve been whipsawing people back and forth,” Lowe said. “I think we’ve got it now.”
Do you think MoviePass’ new subscription model will go over well with fans? Let us know your thoughts in the comments below.
