Struggling cinema subscription service MoviePass has a novel plan to ensure its survival: Raise prices and lower the quality of the service. The firm has decided on this winning combo, days after taking out an emergency loan to keep the lights on.
From an unspecified point in the next 30 days, a MoviePass subscription will cost $14.95 a months, which is up from the current $9.95 a month. That’s still a decent deal for the ability to see one movie every day, but less so with news the company is cutting back on access to first-run movies.
In a press release (via Gizmodo) from its parent company, the Netflix-for-cinema firm says: “First Run Movies opening on 1,000+ Screens” will be “limited in their availability during the first two weeks, unless made available on a promotional basis.”
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Two weeks to see a blockbuster? Wow. At least that’s contrary to reports that the company was cutting access to Blockbusters completely. Some users complained Mission Impossible 6 tickets were not available in their area, but MoviePass says this is simply the film is the first to limit availability during the opening couple of weeks.
Regardless, it’s still a major downgrade for subscribers to the disruptive US-based platform. However, it appears to be a necessary evil to keep the company afloat at this stage.
MoviePass says this will cut its costs (or “money burn”) by up to 60%, as it looks towards future sustainability. It says achieving five million subscribers under these new terms will help it achieve profitability. The company says it currently has in excess of 3 million users, but it’s unclear whether people will ditch the service now the price has been hiked, and access to movies has been restricted.
Those who signed up for a yearly pass at the old rate will retain that price until the length of the subscription expires.
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