In an effort to slow the cash bleed, MoviePass announced soon after that it was raising the subscription fee to $14.95 a month, adding surcharges to certain popular movies, and blocking customers from seeing new movies during their first two weeks of release. That still works out to something of a deal if you watch enough films in theaters, but it's still going from unlimited movie tickets to just three per month.
The new plan will not affect annual subscribers until their plan is renewed, but monthly subscribers will be moved to the new plan after August 15.
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. Also eliminated are peak pricing and ticket verification. "While most of our loyal subscribers shared the passion for this new accessible movie experience and experimented fairly, the fact is that a small number have used our business model to a point where it was compromising the business' long-term stability".
MoviePass made headlines last month when the app suffered an outage because its parent company couldn't afford to pay for customers' tickets.
Mobile Essentials is a new rate plan that’s launching August 10th
Also, despite being advertized as an unlimited plan, throttling still hits after you pass over 50GB of used data in a month. Interestingly, T-Mobile said it will throttle Essential customers during times and in places with heavy network demand.
MoviePass has more than 3 million subscribers.
For example, if a MoviePass user wants to see the "Aquaman" movie this winter they should be able to see it at MoviePass-compliant theaters on opening weekend, with none of the issues that plagued the service during the opening of the latest "Mission: Impossible" film.
MoviePass is abandoning those wildly unpopular changes in favor of limiting the number of movies you can see per month. "However, any industry-wide disruption like MoviePass requires a tremendous amount of testing, pivoting, and learning", MoviePass CEO Mitch Lowe said in a statement. Helios & Matheson shares have fallen almost 100 percent this year, to 10 cents.