MoviePass plans to drastically cut the number of movies its subscribers can see — to three a month.
The move, a 90 percent drop from its current movie-a-day policy, is aimed at reducing the amount of cash the company burns through each month.
MoviePass, which until last week boasted “Any movie. Any theater. Any day.” on its website, has seen its stock lose nearly all its value over the past two weeks as its app has crashed over and over due to a lack of funds.
Under the revised policy, set to begin on Aug. 15, the $9.95-a-month fee remains unchanged but MoviePass will drop its surge pricing and its recent move to block sales of tickets to recently opened blockbuster movies.
“Any industry-wide disruption like MoviePass requires a tremendous amount of testing, pivoting, and learning,” CEO Mitch Lowe said in a statement, adding that the new pricing will “help to stabilize our business model.”
Lowe noted that 85 percent of MoviePass subscribers will notice “no impact whatsoever” from the change because they see fewer than four films each month. Still, 450,000 of the company’s 3 million subscribers will feel a pinch.
“We are now creating a framework to provide the vast majority of subscribers with what they want most — low cost, value, variety, and broad availability — and to bring some moderation to the small number of subscribers who imposed undue cost on the system by viewing a disproportionately large number of movies,” Lowe said.
MoviePass last Tuesday announced that it would raise its prices to $14.95 a month “in the next 30 days” — but that new price has been scrapped.