MoviePass to raise its price 50% to $14.95 a month and limit ticket availability to blockbusters

MoviePass to raise its price 50% to $14.95 a month and limit ticket availability to blockbusters
Trying to better match revenue flow and expenses, MoviePass will raise its subscription price sometime over the next 30 days by 50%, to $14.95/month. The current rate is $9.95/month. Subscribers get to view one 2D movie every day. As we told you last night, CEO Mitch Lowe held a meeting yesterday to inform employees that subscribers will no longer be able to use the service to view blockbuster movies.

Last weekend, the new Mission Impossible film was off-limits, and upcoming titles from Disney (Chirstopher Robin) and Warner (The Meg) will also be unavailable to MoviePass members. Unless a studio has a pre-arranged deal with the company, first run movies opening on more than 1,000 screens will be limited to MoviePass members during the first two weeks of their runs.

Last night was a repeat of what happened last Thursday when MoviePass cards weren't being accepted by participating theaters. Those using E-tickets were allowed to see their movies. MoviePass last week had blamed this on technical issues, but a subsequent SEC filing revealed that the real reason why members using the card were stranded at the box office had to do with the lack of cash in the company's bank accounts.

To make sure that the company could move ahead, but only on a short term basis, last Friday MoviePass borrowed $5 million from a hedge fund in the form of a $6.2 million Demand Note. The problem is that tomorrow, the lender can demand that $3.1 million be repaid. On August 5th, the lender can demand $6.2 million from MoviePass.


Investors were initially pleased about the higher monthly subscription fee. The shares of parent company Helios and Matheson Analytics Inc. more than doubled on the open today, hitting an intra-day peak of $2 a share. But sellers have since taken over and the stock is currently trading at 52 cents, down another 35% today. Keep in mind that this stock recently had a 1-for-250 reverse split.

source: TechCrunch

FEATURED VIDEO

6 Comments

1. Rampage_Taco

Posts: 1095; Member since: Jan 17, 2017

Glad I made the switch to A-List before this nonsense

2. thxultra

Posts: 466; Member since: Oct 16, 2014

Did the same thing. Got A-List the day it came out. I thought Surge pricing was bad but now I see people got hit with $6 surge pricing. Under this new rate it will cost more then A-List after the first movie and that is if you can even see the movie you want to see.

3. haydenb

Posts: 138; Member since: Nov 24, 2011

Id consider A-list but the problem is there is only 1 AMC theater in my area and i dont live near it.

7. Rampage_Taco

Posts: 1095; Member since: Jan 17, 2017

That is really unfortunate. i live 45-60 minutes away from 2 different AMCs so it works out. especially with the option to pre-order tickets and reserve seats

4. two_soggy_waffles

Posts: 58; Member since: Aug 10, 2017

trash

5. tedkord

Posts: 17452; Member since: Jun 17, 2009

I was waiting for it to get worse. I'm in!

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.