MoviePass isn't getting rid of their movie-per-day plan, CEO says
The plan is returning after a brief hiatusBy Cohen Coberly
MoviePass has certainly run into its fair share of hurdles recently. The theater ticket subscription service has exploded in popularity following their decision to drop prices to a mere $9.95/month, and the company has struggled to keep up with the resulting influx of new customers.
Indeed, the company's massive growth has been a double-edged sword. Since MoviePass pays for customer movie tickets out-of-pocket, they lose money every time a customer sees more than one movie a month.
While MoviePass has said in the past that they intend to monetize their service in the future via partnerships with theater chains and targeted advertising, it recently seemed they would be taking more drastic steps to reduce their ongoing losses.
Specifically, MoviePass partnered up with iHeartRadio to offer their customers a $30 three-month plan that included a free trial of the popular music streaming platform.
That might sound great on paper, but there were a couple nasty caveats - users who bought into the plan were restricted to viewing four movies a month and it was the only plan available to new subscribers.
The Hollywood Reporter recently asked MoviePass CEO Mitch Lowe if his company would ever bring the movie-a-day plan back, but the CEO responded by saying he simply didn't know.
Now, Lowe has confirmed that the plan is returning, claiming his evasive attitude during the iHeartRadio promotion was simply clever marketing.
"We wanted to focus everybody on this partnership promotion," Lowe said in a statement to Variety. "If people knew the [movie-a-day] plan was coming back, they might not be interested in the iHeartRadio deal." Lowe went on to say the company doesn't plan to permanently ditch the movie-a-day deal anytime soon.