MoviePass also announced it was abandoning its previously announced price hike. At some theaters, it has been common to see long lines with people holding red MoviePass cards, which subscribers can use to charge a movie to the service. Instead of a monthly fee of $14.95, subscribers will continue to pay $9.95 a month.
Citing community response, a desire to create a "sustainable business model", and combatting a small number of users viewing "a disproportionately large number of movies" as the reasons for its decision, MoviePass - which now allows customers to see one theatrical release per day for a monthly price - confirmed Monday it will not increase its recurring fee to $14.95 per month.
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The company also announced Monday that it will keep the monthly subscription price at $9.99. In the press release announcing its new plan, the company said "the new plan will include many major studio first-run films". Furthermore, peak pricing and ticket verification is being suspended under the new plan. Last month MoviePass simply ran out of money, requiring an emergency $5 million loan to even remain in service. The company slashed its prices nearly a year ago - allowing subscribers to see a movie in theaters every day for less than the typical cost of a single ticket in many cities - and its popularity skyrocketed. In the interview, CEO Mitch Lowe said that the move, which will take effect on August 15, will cut more than 60% from MoviePass' burn rate and ease some of its pain points as it works to turn its operation around.
Monthly subscribers will get the revamped plan when their subscriptions are up for renewal while annual subscribers won't be affected by the change until their renewal date comes up.
MoviePass has faced a few challenges in the last couple of weeks.