MoviePass reveals new subscription plan: No to price hike, but movies are limited

MoviePass continues its struggle to survive, dropping plans to raise prices but now limiting how many movies subscription customers can see per month.

MoviePass seems to be playing a real-world version of Survivor. But unlike the TV show, which continues to demonstrate its ability to outlive and outlast wanna-be competitors, MoviePass is facing multiple problems, according to Variety.

Will MoviePass get a pass from movie-goers?

In an era where an invite to “Netflix and chill” still scores (er, no pun intended), MoviePass has increasingly been challenged to build its customer base. But the company does get bonus points for listening to consumers, who protested price hike rumors.

So rather than boost the cost for a monthly subscription from $9.95 to $14.95, MoviePass is no longer offering the enticement of a film daily. Instead, starting August 15, subscribers can see a maximum of three movies per month.

And as they say on those addictive infomercials: “But wait, there’s more!” If customers purchase movie tickets beyond the three-film monthly limit, MoviePass will give them as much as a $5 discount.

MoviePass defends new limits

In a press release, MoviePass pre-empted protests of the new limit. According to the company, just 15 percent of members view four or more films each month. Therefore, MoviePass said in its statement, “We expect that the new subscription model will have no impact whatsoever on over 85 percent of our subscribers.”

Moreover, members who purchased annual subscriptions won’t be impacted until the date of their yearly renewal, clarified the company.  The company also claimed that the change over to a three-movie-per-month limit will provide members the chance to view “many major studio first-run films.”

Wall Street responds to new plan, but there’s a caveat

The revised subscription plan boosted shares of MoviePass’ data firm owner, Helios & Matheson. Shares soared by 28e percent in the first part of the day.

However, MoviePass has challenges including:

• AMC as a challenger, with the theater chain promoting its own subscription plan, A-list, that offers three movies a week for $19.95
• Recent service outages
• Concern that its business plan may be problematic, given that the company pays full price for some tickets (MoviePass points to advertising sales as a key part of its business model).

But don’t assume that MoviePass will go down without a fight. The company turned to Twitter to paraphrase Mark Twain’s quote that “the reports of my death have been greatly exaggerated.”

What do you think of MoviePass’ new subscription plan? Would you rather Netflix and chill or go to the movies? Share your views in our comments section.