MoviePass, which has experimented with a range of subscription schemes in recent months, is rolling out an “uncapped” movie-per-day plan that will be $9.95 for those who pay for 12 months in advance.
The plan costs $14.95 on a month-to-month basis, and the company (a unit of Helios and Matheson Analytics) cautioned that the pricing will be available only for a limited time. After the promotional period, which the company did not specify, the standard price of $19.95 will take effect.
The Select, All Access and Red Carpet subscription plans, introduced in December 2018, are no longer available for purchase, but the company said they will remain effective and working for users who subscribed to them.
One of the strategic steps that led to problems for the company last year was its decision to offer nearly unlimited moviegoing for just $10 a month. As the number of subscribers ballooned into the millions, the company was forced to procure blocks of expensive tickets in order to fulfill subscriber orders. That quickly burned a lot of cash, and the company also said fraudulent use of the app worsened the damage. As a result, when subscribers tried to attend popular summer titles last year, they were frozen out, badly tarnishing the image of MoviePass, which had been hailed as an Uber-like disruptor in the staid exhibition sector.
Investors have sparked to today’s news, sending shares up 30% in over-the-counter trading. The Helios share price remains at about a penny, though, where it has been for months as the company has been staggered by a host of accounting issues, staff defections, shareholder complaints and user wariness. Executives are continuing with plans to spin off MoviePass — and its ticketing, financing, production and Moviefone operations — into a separate company.
“We are – and have been – listening to our subscribers every day, and we understand that an uncapped subscription plan at the $9.95 price point is the most appealing option to our subscribers,” he said in the press release. “While we’ve had to modify our service a number of times in order to continue delivering a moviegoing experience to our subscribers, with this new offering we are doing everything we can to bring people a version of the service that originally won their hearts. We’re thrilled to introduce this new uncapped plan at a price point that is unbeatable in the industry.”