I’m sure this will surprise absolutely no one but it looks like the end is definitely nigh for MoviePass, the so-called “Netflix for movie theatres” subscription service. Over the past couple of months there has been a lot of talk about how the company is continuing to burn through money at an alarming rate and their stock has plummeted accordingly. With some 3 million users in the U.S. seeing a movie a day for $10 a month, that is probably to be expected. An attempted pivot into movie distribution was also unsuccessful, although their choice in movies (the recent John Travolta bomb Gotti, for example) may be part of the problem. This past Friday they were forced to borrow another $6.2 million in order to help keep the lights on. By all accounts, it appears to be desperate times and now MoviePass has introduced some changes to their monthly plan in order to help reduce their expenditures. But is it too little too late?
According to Variety, MoviePass has increased their monthly subscription fee from $9.99 to $14.95 per month over the next 30 days. They will also restrict users from purchasing tickets to most major Hollywood blockbusters within their first two weeks of release. This comes just a few months after the company ended their unlimited movie offer and started offering new subscribers a four movie per month plan. They claim that this will reduce their cash burn rate by 60%, but will they lose all of their subscribers in the process?
It remains to be seen just how many people rely on MoviePass for brand new releases currently. There has already been plenty of frustration caused by the introduction of peak pricing for high demand screenings of new movies. Obviously if you are more interested in smaller indie releases and catching up on movies that have been in theatres for a few weeks, MoviePass is still a great deal. But with fresh competition from AMC’s own subscription service, AMC Stubs A-List, it is unclear if they can survive much longer. Are you still a loyal MoviePass subscriber or will you be jumping ship ASAP?