MoviePass is attempting to stay afloat, while the competition from AMC is growing even more fierce. The company just announced that they will be capping the number of visits a subscriber can make each month to theaters. CNN reports that the changes will take effect on August 15. The change replaces their originally planned price increase of $14.95 a month. The struggling movie theater subscription company is canceling their "peak pricing" surcharges for popular blockbuster films and their ticket verification process.

This decision to cap movie visits is a major shift from the company's original offering, but the company says most subscribers will not be affected.

NPR reported that the company released a statement, which relayed that only 15 percent of subscribers watch four or more Movies each month.

MoviePass operations costing the company millions

MoviePass operates by paying theaters full price for each ticket, while only charging subscribers a subscription fee. This operation has caused MoviePass to struggle financially. Last month, MoviePass completely ran out of money, needing an emergency $5 million to remain in service.

MoviePass' struggles have hurt their company's stock prices and have impacted the number of showtimes being unavailable for users. MoviePass called the situation a "rough patch."

MoviePass has a long history, uncertain future

MoviePass has been around for several years, but it was originally more expensive, with fewer subscribers.

Last year, MoviePass decided to slash its price and allow subscribers to see a movie every day at a price of $9.95 per month. Over three million people have joined MoviePass, making it one of the fastest growing subscription services.

The Wall Street Journal reported that MoviePass CEO Mitch Lowe said that the new changes would slow the company's cash burn rate by over 60 percent and make it more manageable.

MoviePass has had a $45 million cash deficit since June. Last month, MoviePass even stopped subscribers from watching "Mission Impossible: Fallout."

Lowe said all these changes have helped save money, but left subscribers angry and confused. MoviePass decided to revoke some of the money-saving changes that were made. Now subscribers will get a $2 to $5 discount on a ticket if they see more than three films a month.

MoviePass is available at 91 percent of theaters in the country, and claims they account for six percent of the total domestic box office this year.
© ALL RIGHTS RESERVED