MoviePass is making big changes to its service yet again. The Company has now cut its offering to just three movies per month, aiming to reduce its cash burn rate and turn a profit.
The new subscription offering will price at USD 9.95 per month. It will take effect at August 15th, 2018. MoviePass subscribers will transition to the new plan upon their renewal. The current subscription plan allows customers to see up to a movie a day for USD 9.95 per month.
The Company also said it will not raise its price to USD 14.95 a month, which it announced a week ago. It also announced that it will suspend Peak Pricing and Ticket Verification. Peak Pricing asks customers to pay an additional fee for certain screenings of popular films.
The Company said only 15% of subscribers see more than three films a month. Under the new subscription plan, subscribers who want to see more than three movies a month will get up to a USD 5.00 discount for any additional movie tickets. The Company expects the new plan will not have a meaningful impact on the remaining 85% of members.
“We are well aware that during our journey to innovate moviegoing — a form of entertainment that over time has become unaffordable and broken — we’ve encountered many challenges. However, any industry-wide disruption like MoviePass requires a tremendous amount of testing, pivoting, and learning,” MoviePass CEO Mitch Lowe said in a statement.