In a statement released on Monday, MoviePass revealed its new $9.95 price point, "which gives subscribers up to three movies a month... and up to a $5.00 discount for additional movie tickets" (via The Hollywood Reporter).
The company says the new plan will include "many major studio first-run films", though there will be exceptions the company didn't specify. The service allows you to pay a monthly subscription fee to attend movies at local theaters.
Monday's announcement does not specify limitations on titles, though it does confirm the new plan "will include many major studio first-run film" when changes take effect with renewals on or after August 15.
According to MoviePass, only 15 percent of customers see four or more movies a month.
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"We are now creating a framework to provide the vast majority of subscribers with what they want most - low cost, value, variety, and broad availability - and to bring some moderation to the small number of subscribers who imposed undue cost on the system by viewing a disproportionately large number of movies", Lowe said. A new pricing plan instead will keep the cost at $9.95 per month, though users will only be able to view three films across the subscription frame.
"They will not be affected at all by this program, and even better, they'll stop hearing MoviePass is going out of business", Lowe told WSJ.
"I should have accelerated the process of reducing the burn faster in hindsight". In a Securities Exchange Commission filing in April, Helios and Matheson Analytics (HMNY), MoviePass's parent company, disclosed that it estimated its average cash deficit was over $20 million a month for the seven months through April. The stock rose 3 cents to 10 cents per share in early trading Monday, soaring over 45 percent on the new plan news. It didn't take long for the company to burn through all its cash reserves, and the company had to take out a $6 million emergency loan two weeks ago to pay for subscribers' tickets.