MoviePass Changes Its Pricing Again
by EG
MoviePass is finding it difficult to conduct business in a way that doesn't lose lots of money, and in doing so, it keeps changing its pricing plans. New prices will take effect at the first of the year, and they might be attractive to moviegoers who want to see three movies a month. Anyone who's likely to see fewer movies than that could actually lose money on the deal. Read on for details.
Embattled subscription service MoviePass is changing its pricing structure once again, the company announced Thursday.
Under the new plans, customers — depending upon where they live — will pay anywhere from $9.95 to $24.95 a month to see three movies a month for a total 36 movies a year.
Additionally, day-to-day operations are being turned over to Khalid Itum, MoviePass' new executive vp, while CEO Mitch Lowe will focus on overall strategy.
The changes were announced by Lowe, Itum and Ted Farnsworth, chairman-CEO of parent company Helios and Matheson, which has seen its stock decimated because of losses related to MoviePass. Farnsworth said the new pricing model will serve as a foundation in reaching new members and regaining "positive momentum" in the marketplace. Helios stock trades for less than two pennies a share and is in danger of being delisted by NASDAQ.
The rejiggered pricing options will take effect Jan. 1. The updated offerings are being communicated to current subscribers, who can elect to remain on their existing plan.
Customers living in cities where movie tickets cost more, such as in Los Angeles and New York City, will have to pay more across the board. The cost of the three plans is based on which of three zones a person lives in.
Those choosing the "select" plan will pay $9.95 to $14.95 a month or more to see 2D movies only. Also, films won't be available on opening weekend, at least not for the near future. The "all access" plan, ranging from $14.95 to $19.95, will be able to see any three 2D movies of their choice at any point in a film's run.
The most expensive option is the "red carpet" plan, which starts at $19.95 a month and tops out at $24.95. It is the same as the select plan, except that one of the three movies can be seen in 3D, Imax or a premium format.
Get the rest of the story at The Hollywood Reporter.
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