The reason for this is that while the subscriber only pays $7.95/$9.95 per month, MoviePass pays the full ticket price for every movie that the subscriber goes to watch.
MoviePass needs to save some cash, and will be raising prices and limiting new movies to do it.
This is hardly a shock to those who were trying to use the service this past weekend, when subscribers were turned away from being able to see Mission Impossible - Fallout. MoviePass took out an emergency $5 million loan, but still struggled to return to normal.
I suspect the new restriction on seeing big-name movies when they come out is going to prove to be more of a problem for MoviePass than the price increase.
MoviePass said actions that have been implemented are now cutting their monthly cash burn rate by 60 percent. In June, the company introduced surge pricing for some opening weekend films. There's some kind of vague plan in the future to monetize data about its users or to use its subscriber base to negotiate deals with movie chains, but the business plan will have to be particularly excellent to turn MoviePass's dire financials around.
Then today, users on social media began reporting another service outage, this time with entire theaters showing no movies available for MoviePass customers, leading many to assume the worst. They include jacking up the prices from the popular $9.99 to $14.95 per month over the next 30 days, as well as limiting access to almost all Hollywood blockbusters within their first two weeks of release.
MoviePass said the change was being made "in an effort to maintain the integrity of the MoviePass mission, to enhance discovery and to drive attendance to smaller films and bolster the independent film community". "Our community has shown an vast amount of enthusiasm over the past year, and we trust that they will continue to share our vision to reinvigorate the movie industry", said Mitch Lowe, MoviePass CEO in a statement.
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