As that process has gone on, MoviePass has implemented - and sometimes subsequently removed - a number of policies in an attempt to cut its losses.
Once again, MoviePass CEO Mitch Lowe struck an apologetic tone, citing the "many challenges" the company has faced, adding that these new changes will add "stability" to the "industry-wide disruption" that is MoviePass.
MoviePass notes that only 15 percent of members see four or more movies a month so they expect the new subscription to have no impact whatsoever on the other 85 percent of subscribers.
We have heard - and we have listened to - our MoviePass Community and we will not be raising prices to $14.95 a month.
MoviePass will reduce the number of movies its subscribers can see by 90 percent, with subscribers in the $9.95 monthly fee tier seeing their movie allowance decrease from one per day to three per month.
The movie-per-day option is officially being removed as the company struggles to stay in business. And even after one movie, it'll pay for itself each month. It's not all bad though - the price of the plan is back to $9.95, reversing a plan that MoviePass announced just last week that would have seen the price increased to $14.95 per month.
The business model change comes after weeks of controversy for MoviePass. The company is running through cash like it's going out of style because it has to pay the full price for each of its subscribers' heavily subsidized movie tickets. For each additional movie, you see you will get a $5 discount off your ticket starting August 15th. Still, 450,000 of the company's 3 million subscribers will feel a pinch.
Two law firms announced on Monday that they have begun seeking defendants for class action litigation against MoviePass parent company Helios and Matheson Analytics, claiming that the company over-inflated MoviePass's profitability when presenting information to investors, who then lost money.
Additionally, peak pricing and ticket verification will also be suspended.
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