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 movies per month. If customers see more than three movies 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 movies 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 movies per month.