By limiting ticket usage, the new plan addresses what MoviePass calls past misuse like ticket scalping which imposed undue costs on the system.
Movie theater subscription service MoviePass will not be raising prices, as it had announced last week, but will instead be capping the number of times that subscribers can visit movie theaters. "Any theater. Any day." on its website, has seen its stock lose almost all its value over the past two weeks as its app has crashed over and over due to a lack of funds.
As part of its new model, MoviePass is doing away with a bunch of other changes, too.
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MoviePass also announced Monday morning that it has reversed its decision, announced less than a week ago to hike its monthly subscription fee to $14.95 per month.
The once-red-hot ticketing service will now limit customers to seeing three movies a month, according to a company press release. And even after one movie, it'll pay for itself each month. In attempt to burn less money, MoviePass announced it would not be offering major tentpole releases like "Mission: Impossible - Fallout" on its service during the first two weeks of release.
The new caps take effect August 15, though those with annual subscriptions won't be affected until their renewal date.
Members who want to see more than three movies will be able to buy tickets through MoviePass at a discount of up to $5 per ticket, the company said. It is backing away from a plan, announced just last week, to raise the price to $14.95. Annual subscribers will not shift over to the new plan until their subscriptions go up for renewal. In a Securities Exchange Commission filing in April, Helios and Matheson Analytics (HMNY), MoviePass's parent company, disclosed that it estimated its average cash deficit was over $20 million a month for the seven months through April.