Bottom line: It's all hands on deck at MoviePass. The company ship is taking on water at an alarming rate and is clearly desperate to try anything at this point, backtracking on previous stances and strategies in an effort to appease members and shareholders.
MoviePass parent company Helios and Matheson Analytics Inc. on Monday announced a new subscription plan and business model set to go into effect August 15, 2018, in what is viewed by many as yet another last-ditch effort to keep the company afloat.
The new plan will grant users access to up to three movies a month and up to a $5.00 discount for any additional tickets, all for $9.95 per month.
MoviePass notes that only 15 percent of members see four or more movies a month so they expect the new subscription to have no impact whatsoever on the other 85 percent of subscribers. By limiting ticket usage, the new plan addresses what MoviePass calls past misuse like ticket scalping which imposed undue costs on the system.
MoviePass adds that the new plan will include “many major studio first-run films” (yet notably, not all). Furthermore, peak pricing and ticket verification is being suspended under the new plan.
It’s worth clarifying that MoviePass will not be raising prices to $14.95 per month. Clearly, the proposed 50 percent increase in cost wasn’t popular with members.
Monthly subscribers will be given the opportunity to subscribe to the new plan when their existing plan comes up for renewal on August 15, 2018. Annual subscribers will not be affected by the changes until their renewal date.