Of late, MoviePass has been in the news for all the wrong reasons after it announced that it will be increasing its subscription prices and add surge pricing for popular movie tickets. 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.
Instead, the company will continue to charge $9.95/month to its existing and new subscribers. However, starting from August 15, it will impose a limit on the number of times one can go watch a movie using their MoviePass subscription. Starting from August 15, users will be limited to watching only 3 movies using their MoviePass subscription every month.
We have heard – and we have listened to – 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.
The company says this will allow it to create a “long-term and sustainable business model.” MoviePass has also suspended Peak Pricing and Ticket Verification for all its subscribers who have already migrated to its new plan. 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.
As a part of this new plan, MoviePass subscribers will also get a $5 discount on any additional movie ticket that they purchase over and above the monthly three free tickets.
As expected, MoviePass has been receiving a lot of outrage from its existing subscribers for this move as well. However, this new plan does seem to make a lot of sense and should help the company sustaining its business as well. Are you a MoviePass subscriber? If yes, what do you think about this change?