MoviePass Limiting Subscribers To 3 Movies Per Month

Carla Harmon
August 7, 2018

"We discovered over several months of research that our customers value a low monthly price above almost everything else, so we came together to create a plan that delivers what most of our loyal MoviePass fans want, and one that, we believe, will also help to stabilize our business model".

MoviePass' new model makes it similar to AMC Theaters' premium subscription program called AMC Stubs A-List, which allows its subscribers to see three movies a month for $19.95 per month. However, starting from August 15, it will impose a limit on the number of times one can go watch a movie using their MoviePass subscription.

The movie-per-day option is officially being removed as the company struggles to stay in business.

The one big question about MoviePass's new plan is what big movies you'll be able to see. MoviePass has been making change after change in recent months to stem the losses, including the introduction of Uber-esque Peak Pricing for popular movies at highly trafficked showtimes and limits on new releases.

The business model change comes after weeks of controversy for MoviePass.

Though MoviePass says it's not raising prices to $15, there's still a hidden price increase. So it made more sense to cut the number of movies that subscribers could see in a month instead of hiking the monthly subscription price.

As part of the new model, the company is also suspending peak pricing and ticket verification.

Two law firms announced on Monday that they have begun seeking defendants for class action litigation against MoviePass parent company Helios and Matheson Analytics, claiming that the company over-inflated MoviePass's profitability when presenting information to investors, who then lost money.

"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.

The new plan will also include "many major studio first-run films", according to the company.

The stock gained 2 cents on Monday after the new plan was announced. It later said it paid back that loan.

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