Are you one of the many individuals who signed up for an annual subscription to MoviePass back when it was an offer too good to refuse? When the deal was unlimited movies for a year for like $84? Yeah, well, MoviePass really regrets offering you that too-good-to-be-true deal and now is killing off annual plans. The struggling entertainment company is offering you a refund, IF you are able to cancel.
MoviePass sent annual subscribers an email informing them that they have to go to a monthly plan that has a lot more restrictions than the original offer. Customers will have the option to cancel their annual membership and get prorated refunds.
“We want to thank you for being a loyal member of our annual MoviePass plan. Your commitment to MoviePass has contributed to making our vision for an accessible and affordable moviegoing experience a reality,” reads the email. “After experimenting with different models and options, we believe that our current monthly plan captures the need of our community — keeping prices low while continually striving to offer a wider selection of films.”
MoviePass changed their offerings from the movie-a-day plan to only three movies every 30 days. You can receive up to a $5.00 discount on any additional movie tickets purchased. They also limited which movies you could see, cutting off many blockbusters and brand-new movies. These changes initially only affected monthly MoviePass subscribers, but now is being applied to those on the annual plan.
MoviePass is not giving subscribers a lot of time to cancel. You only have until next Friday, August 31st, to cancel your plan. Otherwise your inaction will be assumed that you accept the new restrictive plans and you will continue under a monthly basis. You may want to cancel and get a refund while MoviePass isn’t bankrupt and still has some money.
MoviePass is allowing subscribers to cancel and get a refund because if they just changed the terms of the annual plan within the year of service they would open themselves up to a potential class action lawsuit. And legal action isn’t something MoviePass wants especially since their own shareholders are suing MoviePass parent company Helios and Matheson for fraud.
Turns out that the entrepreneurs over at MoviePass didn’t realize offering a product that is under its cost and loses the company money on every sale isn’t a great business model. MoviePass has burned through their investor money and are now making wholesale changes to the movie service in a last-ditch attempt to not hemmorage money.
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“We want to thank you for being a loyal member of our annual MoviePass plan,” the email reads. “Your commitment to MoviePass has contributed to making our vision for an accessible and affordable moviegoing experience a reality. After experimenting with different models and options, we believe that our current monthly plan captures the need of our community — keeping prices low while continually striving to offer a wider selection of films.”
It might be time to consider these MoviePass alternatives.