MoviePass caps amount films at 3 per month, rolls back changes

Hollis Johnson/Business
Insider

• MoviePass announced Monday that it would limit the
  number of films subscribers can see to three per
  month.
• The new plan erases newly announced changes including
  surge (“peak”) pricing, an increased monthly fee, and a ban on
  major releases (such as “Mission: Impossible —
  Fallout”).
• The change is meant to control the company’s cash burn,
  which has soared to an estimated $45 million monthly.

There are more changes coming if you have a MoviePass
subscription, but this time they actually might be a good for
you.

On Monday, MoviePass announced that starting August 15, its
service will only allow users to see three films per month. If
customers see more than three films per month, they’ll get a
discounted ticket if they book through the MoviePass app (at $2
to $5 a ticket).

This might sound bad at first blush, but MoviePass is also
rolling back several recent changes that enraged many
subscribers. These changes included surge (“peak”) pricing for
certain films and showtimes, no access to major releases like
“Mission: Impossible — Fallout,” and the increased monthly fee of
$14.95 a month. With this new plan, none of those measures are
happening anymore.

MoviePass CEO Mitch Lowe told
The Wall Street Journal that this change would reduce the
cash burn rate by more than 60%, and that it would make its
transition to being a profitable company “more manageable.”
However, with the cash burn rate reaching an estimated $45
million last month, it’s still an uphill climb. Even if MoviePass
cuts its burn rate by 60%, it would still be substantial.

“I should have accelerated the process of reducing the burn
faster in hindsight,” Lowe told the Journal. 

This new option is hopefully more economically viable for
MoviePass and preferable for customers, who complained about peak
pricing and not being able to see major releases. Lowe said only
15% of MoviePass subscribers saw more than three films per
month.