A few weeks ago, MoviePass went down completely after it ran out of money-its parent company was able to borrow the cash to get the service back up and running. "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.
The business model change comes after weeks of controversy for MoviePass. The company says that since only about 15 percent of its subscribers see four or more movies a month, this restriction is unlikely to have an impact on a vast majority of them. Still, 450,000 of the company's 3 million subscribers will feel a pinch.
With all of these issues percolating in the background, MoviePass has chose to change its tactics and will not raise its monthly subscription price after all.
MoviePass will reduce the number of movies its subscribers can see by 90 percent, with subscribers in the $9.95 monthly fee tier seeing their movie allowance decrease from one per day to three per month.More news: Virat Kohli Overtakes Steve Smith to Become the Number 1 Batsman
Monday's announcement does not specify limitations on titles, though it does confirm the new plan "will include many major studio first-run film" when changes take effect with renewals on or after August 15.
MoviePass is continuing to alter its business plan in attempt to keep the company afloat, but the latest announcement is a dramatic change to what made the company so enticing for moviegoers. Now, in a bid to pacify its users and stop all that criticism, MoviePass today announced that it will not be raising its subscription price to $14.95/month as it had previously announced. And even after one movie, it'll pay for itself each month.
The company will suspend surge pricing, which sometimes added as much as $8 to the cost of an individual ticket.
The new plan will also include "many major studio first-run films". Stock for its parent company, Helios & Matheson, is now at a little under $0.10 per share-a month ago it was over $47.