We knew MoviePass was too good to be true; a movie a day for only $9.95. You now can’t see a movie a day on the service that was marketed as the service that lets you see a movie a day.
Last week, MoviePass announced that they would increase the price of its plan to $14.95. And for that extra $5 a month MoviePass said you could no longer see blockbuster movies. MoviePass was properly dragged on Twitter for their new restrictions that came with the sudden price hike.
Now only days after saying they’re raising the price to $14.95, MoviePass says they’re not raising the price to $14.95. But there’s a catch because there’s always a catch. MoviePass now only allows you to see three movies a month instead of one a day. The new movie limits go into effect on August 15th.
The P.R. team at MoviePass is really earning their keep with the weekly press releases. This most recent press release is so craftily worded and describes the new limitations as “boundaries to ensure long-term stability.” That’s some real wordsmithing right there — translation: “We’re really not great at math and didn’t realize offering people to see $280 worth of movies for only $10 would bankrupt us until now.”
Helios and Matheson Analytics, the MoviePass parent company, says “only 15 percent of MoviePass members see four or more movies a month.” However, the company insists that the 15% of subscribers who see four or more movies a month “has been stressing the system.” Way to go people who used the service as MoviePass said you could and saw 31 movies in one month, you ruined it for the rest of us. It was fun while it lasted.
“We believe this new business model will immediately reduce our burn so we can refocus our efforts where they belong: making a permanent and positive change in this industry by creating an amazing theater-going experience and building a company that continues to benefit our nationwide community,” said Ted Farnsworth, Chairman and CEO of Helios and Matheson Analytics.
There is some good news with the new changes besides the price. “The new plan will include many major studio first-run films.” The movie subscription service is suspending peak pricing and ticket verification for users who have migrated to the new plan. Will these plans allow MoviePass to actually make a profit or will MoviePass go down in fiery blaze of fail?
[CNBC]