MoviePass backs down on the plan for a price hike

Just days after announcing a plan to increase its subscription rate, MoviePass now says it will keep its monthly rate at $ 10.

The firm was hit hard by subscribers after revealing the planned 50 percent increase in prices last week, which would raise the rate to $ 15.

While the price may remain the same, the benefits will not be the same. In the future, MoviePass will impose a cap on three films per month, instead of one each day.

The company says the new plan will include "many major premiere films," but it is not clear if MoviePass is completely nullifying a recent policy that prohibits viewing of most major releases during the first two weeks.

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The firm was hit hard by subscribers after revealing the planned 50 percent increase in prices last week. Just days after announcing a plan to increase its subscription rate, MoviePass now says it will keep its monthly rate at $ 10. Stock Photo

The firm was hit hard by subscribers after revealing the planned 50 percent increase in prices last week. Just days after announcing a plan to increase its subscription rate, MoviePass now says it will keep its monthly rate at $ 10. Stock Photo

The firm was hit hard by subscribers after revealing the planned 50 percent increase in prices last week. Just days after announcing a plan to increase its subscription rate, MoviePass now says it will keep its monthly rate at $ 10. Stock Photo

MoviePass has grown to 3 million subscribers, of around 20,000, since it cut the monthly rates almost a year ago to $ 10, from as high as $ 50.

Because MoviePass generally pays cinemas the total cost of tickets, $ 15 or more in large cities, a single movie can put the service in red.

MoviePass has shown that many moviegoers will get to theaters when movies are affordable, despite the most convenient options, such as Netflix and video on demand.

In some theaters, it is common to see long lines with people who have red MoviePass cards, which subscribers can use to upload a movie to the service.

The company claims that its subscribers accounted for 6 percent of box office receipts in the United States in the first half of the year.

But its financial sustainability has been questioned.

Last week, its parent company obtained an emergency loan of $ 5 million to pay its payment processors after unpaid payments caused service interruptions.

It also revealed a plan to increase its subscription rate to $ 14.95, with plans for the rate increase to take effect within the next 30 days. But it seems that MoviePass has been reduced to the pressure of the subscribers.

Before the announcement, the firm sent a note to subscribers to justify the surcharges for popular films and exhibition schedules, arguing that this is a way to keep rates low.

MoviePass has grown to 3 million subscribers, from around 20,000, since it cut monthly fees almost a year ago to $ 10, from as high as $ 50. Because MoviePass generally pays movie theaters the total cost of tickets , $ 15 or more in large cities, a single movie can put the service in red.

MoviePass has grown to 3 million subscribers, from around 20,000, since it cut monthly fees almost a year ago to $ 10, from as high as $ 50. Because MoviePass generally pays movie theaters the total cost of tickets , $ 15 or more in large cities, a single movie can put the service in red.

MoviePass has grown to 3 million subscribers, from around 20,000, since it cut monthly fees almost a year ago to $ 10, from as high as $ 50. Because MoviePass generally pays movie theaters the total cost of tickets , $ 15 or more in large cities, a single movie can put the service in red.

To reduce expenses, subscribers will not be able to see most box office hits until the third week of release.

MoviePass already did it with the new movie & # 39; Mission Impossible & # 39 ;.

MoviePass said that a movie distributor could allow previous views through the service by sharing revenue or other arrangements with MoviePass. With 'Mission Impossible', MoviePass also exempted the theaters with which it has agreements.

In the last few months, MoviePass also stopped allowing subscribers to watch the same movie several times and began to demand that moviegoers send photographs of ticket stubs as proof.

WHAT IS MOVIEPASS?

MoviePass is a discount movie ticket service that allows users to watch several movies per month for a flat fee.

It has grown to 3 million subscribers, of around 20,000, since it cut the monthly rates almost a year ago to $ 10, from as high as $ 50.

The firm changed its business model last summer to offer a subscription Netflix style that allows you to watch a movie a day for a flat rate of $ 9.95 per month.

But, because MoviePass normally pays cinemas the total cost of tickets-$ 15 or more in big cities-a single movie can put the service in the red, and its financial stability has become increasingly questioned. .

In the summer of 2018, MoviePass unveiled a plan to increase its monthly rate by 50% to $ 15, and allow subscribers to watch one movie per day.

Days later, he reversed the plan. Now he says he will continue to charge only $ 10, but you can only watch three movies per month.

In the last few months, MoviePass also stopped allowing subscribers to watch the same movie several times and began to demand that moviegoers send photographs of ticket stubs as proof.

"These changes are intended to protect the longevity of our company and prevent abuse of the service," MoviePass CEO Mitch Lowe said in a statement. "While nobody likes change, these are essential steps to continue providing the most attractive subscription service in the industry."

A major theater chain, AMC, recently created its own subscription service after complaining that MoviePass was changing the expectations of moviegoers.

AMC said on Tuesday that in just five weeks, its Stubs A-List service enrolled more than 175,000 subscribers, ahead of its own projections.

The service costs $ 20 per month for three movies per week, although it allows 3D, Imax and other premium projections, something that MoviePass does not currently do.

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