MoviePass announced today the implementation of several new measures aimed at accelerating the plan for profitability. While “profitability” at this points seems like a fairy tale, these changes might help the company last a little longer.
In a press release sent Tuesday, MoviePass said that within the next 30 days, the monthly subscription price for the movie-ticketing service will rise to $14.95 per month. There’s also limitations coming. Subscribers will not be allowed to see select major movies like “Christopher Robin” and “The Meg,” for example. The company also announced that movies released on more than 1,000 screens would be “limited in their availability during the first two weeks, unless made available on a promotional basis.”
“In an effort to maintain the integrity of the MoviePass mission, to enhance discovery, and to drive attendance to smaller films and bolster the independent film community, MoviePass will begin to limit ticket availability to Blockbuster films,” said the release.
These steps have been taken in the hope of cutting the company’s monthly cash burn by 60%, according to the release.
Parent company, Helios and Matheson Analytics, has seen it’s stock crash to just 50 cents. That’s a 96% drops from a $14 price after a reverse stock split 250:1. The app also crashed briefly after it ran out of money.
The news comes close to the one-year anniversary of MoviePass drastically changing its business model by offering the service for just $9.95 per month.