Culture

MoviePass Raises Prices, Limits Access to New Movies to Save Itself

MoviePass Raises Prices, Limits Access to New Movies to Save Itself”

Since the introduction of MoviePass, which allows theater-goers to see one movie a day for a monthly subscription fee, there have been questions about sustainability: How long can MoviePass keep paying for movie tickets when subscribers are only handing over $9.99 a month?

Helios & Matheson - the company that has become synonymous with MoviePass since its purchase of the subscription service past year - announced Tuesday that it would raise its monthly fee to $14.95 "within the next 30 days" while also limiting availability of high-demand movies.

"These changes are meant to protect the longevity of our company and prevent abuse of the service". Not great, Bob! As much as it's seemed like these are final days of MoviePass, the company is still alive and kicking, and making some major changes to stay afloat. After announcing it will be drastically limiting which movies you can see with MoviePass and drastically reducing the number of theaters that are supported, how about a price hike?

On Thursday, MoviePass ran out of money, which prevented subscribers from purchasing tickets.

This news comes in an otherwise glowing and optimistic press release from the company, which brags that its new "cost-reduction and subscription revenue increase measures" have already cut "the monthly burn" by 60 percent.

A future increase of the standard pricing plan to $14.95 per month within the next 30 days. For example, the blockbuster "Mission: Impossible - Fallout", which opened last weekend, was unavailable for at least some MoviePass customers.

Last week, MoviePass' parent company, Helios and Matheson Analytics, did a reverse stock split that boosted shares to about $14 on Wednesday from $0.09 on Tuesday.

To make sure that the company could move ahead, but only on a short term basis, last Friday MoviePass borrowed $5 million from a hedge fund in the form of a $6.2 million Demand Note. "While no one likes change, these are essential steps to continue providing the most attractive subscription service in the industry", said CEO Mitch Lowe. The press release also notes that the company is looking forward to a "continued rollout and refinement of the Peak Pricing program", which saw moviegoers this past weekend charged for "peak pricing" in theaters that were nearly entirely empty. Since MoviePass's launch, other competitor services have surfaced, including AMC's subscription service, which has attracted over 175,000 people in five weeks.



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