MoviePass Revamps Their Plan Again to 3 Movies a Months To Keep Costs at $9.95 a Month
MoviePass has once again revamped their plan so that they can retain the $9.95 monthly subscription price. MoviePass is obviously still trying to figure out how they are going to survive and weather the storm. They keep saying that they're not going out of business, but we'll just have to wait and see how long they can keep this up.
For me, it's just annoying that they keep changing up their plans and messing around with the consumer. Shutting the app down when a big movie release hits, running out of money, limiting the kind of films you can see. As a customer, it sucks and it makes me want to cancel my subscription.
Hell, almost everyone I know that was using MoviePass canceled their subscriptions over the past few days. I'm on the verge of canceling mine. I actually tried to cancel a couple days ago but the app wouldn't let me!
Here are the new changes that will be made effective on August 15th. The new plan:
- Retains its industry-low $9.95/month cost
- Includes many major studio first run films
- Suspended Peak Pricing and Ticket Verification for subscribers who have migrated to the new plan
- Subscribers can see 3 movies/month for $9.95 and up to a $5 discount for any additional movie tickets
We'll have to see how this new plan plays out. With the way things have been going, I'm sure they'll change it up again soon. Here's the full press release with all of the details and a statement from MoviePass CEO, Mitch Lowe:
MoviePass™, the nation’s premier movie theater subscription service and a majority-owned subsidiary of Helios and Matheson Analytics Inc. (Nasdaq: HMNY) (“Helios”), announces its new subscription plan and business model effective August 15, 2018. MoviePass’ new subscription plan retains its industry-low monthly subscription rate of $9.95 and at the same time creates a long-term and sustainable business model. The new plan will include many major studio first run films. For our subscribers who have migrated to the new subscription plan, we are suspending Peak Pricing and Ticket Verification. MoviePass continues to be the most widely enjoyed theatrical subscription service in the United States, available at 91% of the theaters.
We have heard our MoviePass Community and we will not be raising prices to $14.95 a month. The new plan is focused on usage by the bulk of our subscribers who have historically used MoviePass to attend three movies or fewer a month. Additionally, the new plan addresses past misuses which imposed undue costs on the system, including ticket scalping, unauthorized card usage and other activities, which in the past necessitated the use of certain remedial measures that have sometimes been inconvenient for our subscribers.
Beginning August 15, 2018, MoviePass subscribers will transition to the new plan upon their renewal, which gives subscribers up to three movies a month for $9.95, and up to a $5.00 discount for any additional movie tickets. Because only 15 percent of MoviePass members see four or more movies a month, we expect that the new subscription model will have no impact whatsoever on over 85 percent of our subscribers.
“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,“ said Mitch Lowe CEO of MoviePass. “We discovered over several months of research that our customers value a low monthly price above nearly everything else, so we came together to create a plan that delivers what most of our loyal MoviePass fans want, and one that, we believe, will also help to stabilize our business model. While most of our loyal subscribers shared the passion for this new accessible movie experience and experimented fairly, the fact is that a small number have used our business model to a point where it was compromising the business’ long-term stability. As is true with any new company, we’ve evolved to accommodate what has become an unprecedented phenomenon. 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. We believe this new plan is a way for us to move forward with stability and continue to revitalize an entrenched industry and return moviegoing to everyone’s financial reach.”
Monthly subscribers will be given the opportunity to subscribe to the new plan when their current plan comes up for renewal beginning August 15, 2018. Annual subscribers will not be affected by this plan until their renewal dates. Any subscriber can still cancel anytime.
“All along, we’ve known that we need to invest heavily to prove our business model and bring enough subscribers into the business to truly understand their usage patterns and allow us to leverage ancillary revenue opportunities,” said Ted Farnsworth, Chairman/CEO of HMNY. “However, one year and 3 million plus members later, it has become clear that a small number — only 15 percent — of the subscriber base has been stressing the system. We believe this new business model will immediately reduce our burn so we can refocus our efforts where they belong: making a permanent and positive change in this industry by creating an amazing theater-going experience and building a company that continues to benefit our nationwide community.”
Will you be sticking around with MoviePass? Or have you already moved on?