"We discovered over several months of research that our customers value a low monthly price above almost everything else, so we came together to create a plan that delivers what most of our loyal MoviePass fans want, and one that, we believe, will also help to stabilize our business model", MoviePass CEO Mitch Lowe said in a statement.
Of late, MoviePass has been in the news for all the wrong reasons after it announced that it will be increasing its subscription prices and add surge pricing for popular movie tickets. The change will be rolled out starting August 15, the latest in a series of changes to the company's customer experiences as it struggles to stay afloat.
As part of its new model, MoviePass is doing away with a bunch of other changes, too.
Capping movie visits at three per month is a dramatic shift from the company's original promise, but MoviePass says most subscribers won't actually be affected.
Lowe said the "three movies per month" decision was made partially because 85% of MoviePass users only see three films or less each month. Furthermore, peak pricing and ticket verification is being suspended under the new plan.
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In lieu of the proposed price increase to $14.95 a month, the service will keep its subscription price to $9.95 monthly.
MoviePass has grown to 3 million subscribers, from about 20,000, since it slashed monthly rates almost a year ago to $10, from as high as $50. Last month the MoviePass app crashed after running out of money, forcing the company to take out a $5 million emergency loan.
But on Monday, MoviePass reversed course. Parent company Helios and Matheson Analytics had to beef up its shares by executing a 1-250 reverse split, and sellers still dumped the stock. Since then it's fallen all the way back to 7 cents.
Two weeks ago, the company also borrowed $5 million in cash to pay its merchant and fulfillment processors after it had a service outage and couldn't afford to pay for movie tickets.