Could MoviePass come back from the dead AGAIN? Beleaguered discount ticket firm plans to relaunch its unlimited movie plan
- MoviePass said it plans to relaunch and unlimited plan for subscribers soon
- It’s unclear how much subscribers would pay per month for the unlimited plan
- Comes after a tumultuous year for the firm as many feared it would go bankrupt
- Service was temporarily shut down in July after its owner ran out of cash
MoviePass is giving its unlimited plan another go.
The beleaguered ticketing company claims it has found a ‘break-even model’ that will allow it to reintroduce an unlimited plan, where users can see as many movies as they want to each month, according to Variety.
It’s unclear how much subscribers would pay per month for the unlimited plan.
Scroll down for video
MoviePass is trying to win back its angry customers once again. Starting January 1st, 2019, the beleaguered e-ticketing company will offer users three different subscription plans
The company believes it has ‘turned a corner’ and that the unlimited plan could help bring more customers back to the service.
‘Our new business strategy is stabilize, optimize and grow,’ Khalid Itum, executive vice president of MoviePass, told Variety.
When MoviePass launched, it attracted waves of consumers on the proposition that they could watch unlimited movies per month for just $9.99 per month.
But that business model eventually proved futile as the company found that it could no longer sustain it, lest it declare bankruptcy.
In July, MoviePass temporarily went out of service after the company ran out of money, forcing it to borrow an emergency $5 million loan from a hedge fund.
Since then, the company has made strides after it rolled out three new subscription plans this month for users to choose from.
The three plans are ‘Select,’ ‘All Access’ and ‘Red Carpet.’ They’re more expensive than previous MoviePass subscription services, with the entry level plan starting at $10 to $15
The first plan, called ‘Select,’ ranges from $10 to $15 and lets users watch three movies per month.
MoviePass will announce the available titles a week ahead of time and users are excluded from seeing films during their opening weekends.
They’re also limited to 2D movies, plus monthly rates may be cheaper depending on where you live – users in NYC and LA are expected to pay higher rates.
The second tier, ‘All Access,’ costs $15 to $20 – again, depending on where you live.
‘All Access’ subscribers can see any three movies they want, except for those that are in 3D.
The top tier, called ‘Red Carpet,’ ranges between $20 to $25 per month. Users have access to three movies per month, but one of them can be IMAX, 3D or any other large-format screening.
The CEO of Moviepass parent Helios & Matheson, Ted Farnsworth (far right), claims the firm ‘isn’t going anywhere,’ and is looking to mergers and acquisitions as a way to stay afloat
So, the plans are becoming more expensive, and they’re still limited to three films per month that can be watched at participating MoviePass theaters.
Additionally, the plan pricing fluctuates depending on where users’ live, so plans are going to be cheaper if you live in South Dakota vs. if you live in New York.
Itum told Variety that the company is also considering creating a ‘red label’ service where theaters can create their own subscription plans.
MoviePass had been bleeding subscribers as it faced financial troubles, with many expressing frustration over the unreliable service and increasing subscription prices.
But with the new plans in place, MoviePass said consumers are more satisfied than before, with 59 percent of users having a positive view of the company vs. 49 percent before the new subscription plans, according to Variety.
WHAT IS MOVIEPASS?
MoviePass is a discount movie ticket service that allows users to see multiple movies per month for a flat rate.
It’s grown to 3 million subscribers, from about 20,000, since it slashed monthly rates nearly a year ago to $10, from as high as $50.
The firm changed its business model last summer to offer a Netflix-style subscription that lets you see a movie a day for a flat fee of $9.95 a month.
But, because MoviePass typically pays theaters the full cost of tickets – $15 or more in big cities – a single movie can put the service in the red, and its financial stability has come increasingly into question.
In summer 2018, MoviePass revealed a plan to raise its monthly fee by 50% to $15, and allow subscribers to see one movie per day.
Days later, it backtracked on the plan. It now says it will continue to charge just $10, but you can only see three movies per month.
In recent months, MoviePass also stopped letting subscribers view the same movie multiple times and began requiring moviegoers to send photographs of ticket stubs as proof.