Nearly a year after AMC Theaters threatened legal action against MoviePass for its $9.95 monthly subscription plan the U.S. theater chain called unsustainable, the movie ticketing service has introduced new profitability and cost-cutting measures. MoviePass announced that the new changes implemented today are part of the company"s long-term growth plan.
The subscription revenue increase measures, in particular, include a price hike of MoviePass" standard subscription plan to $14.95 per month, which will take effect within the next 30 days. It"s worth noting that the new subscription rate marks an increase of a little over 50 percent from the previous pricing plan.
MoviePass will also limit the availability of major-release movies during the first two weeks of their opening. The new Tom Cruise film titled Mission Impossible - Fallout is the first movie to be limited in terms of available tickets as part of the new policy. MoviePass said major studios may promote their first run movies by continuing to partner with the company.
Mitch Lowe, MoviePass CEO, said:
These changes are meant to protect the longevity of our company and prevent abuse of the service. While no one likes change, these are essential steps to continue providing the most attractive subscription service in the industry. Our community has shown an immense amount of enthusiasm over the past year, and we trust that they will continue to share our vision to reinvigorate the movie industry.
According to the online ticketing company, it has managed to reduce the monthly burn by 60 percent with the actions it has taken so far. MoviePass also said it is making non-subscription revenue of between $4 and $6 per subscriber every quarter at least as of Q3 2018. The company also plans to combine MoviePass Ventures and MoviePass Films with its own original content in order to generate revenue.