Just days after completely running out of money, MoviePass has decided to raise its price and no longer offer access to blockbuster movies. The subscription-based service is raising their standard plan from $10 to $14.95 per month. The price change will take effect in the next month.
CNN reported that MoviePass will restrict users from blockbusters for the first two weeks the films are in theaters. MoviePass has not said how limited access will be but they have said that the major blockbusters such as Marvel films, will be offered through promotions.
Some restrictions have already taken effect
Subscribers have already reported restrictions. Some subscribers were not able to watch "Mission Impossible: Fallout," which opened last weekend. The price increase and new restrictions come as the company was forced to borrow $5 million to pay for movie tickets.
MoviePass CEO Mitch Lowe issued a letter to MoviePass subscribers apologizing for the unreliability of their service over the last few days. Lowe has also said that the company reduced their expenses by 60 percent and will continue to take more measures to stay afloat.
Lowe and MoviePass have also said that the restrictions could be avoided if studios partnered with the subscription service.
Which means that the company would have to pay the studio some amount of money.
MoviePass facing fierce competition
Just an hour after MoviePass announced their decision, CNET reported that AMC announced that 175,000 people enrolled in their AMC A-List subscription service. AMC offers a $20 per month plan that allows moviegoers to see three movies a week at any AMC across the country.
The theater company announced that they expected that will reach 1 million members in the next two years.
MoviePass has always been a service that seemed too good to be true. Originally MoviePass charged $10 per month, which is often cheaper than the price of a ticket to the movies, especially in major cities that charge nearly $20 to see a 2D showing.
Along with AMC, the Alamo Drafthouse is set to offer their own similar subscription service.
As MoviePass continues to stay afloat, stock in MoviePass' parent company Helios and Matheson has fallen over 99 percent last fall. The market value has fallen from $8 billion to only $1 million. The company saw their stock double on Tuesday, following the MoviePass announcement of the price increase, but their gain was eliminated at the end of the day.
