After announcing a price hike just a week ago MoviePass today announced that they will keep their price at $9.95 a month. It's not all bad though - the price of the plan is back to $9.95, reversing a plan that MoviePass announced just last week that would have seen the price increased to $14.95 per month. The planned changes will go into effect on August 15-assuming they don't make any more changes like, you know, tomorrow.
The stock price of MoviePass' parent company, Helios and Matheson Analytics Inc., increased 19 percent to close Monday at 8 cents, though it's still down from almost $50 a month ago, adjusted for a reverse stock split.
Struggling movie subscription service MoviePass will limit customers to three movies per month as the company tries to stay in business by burning through less cash. Furthermore, peak pricing and ticket verification is being suspended under the new plan.
As per MoviePass, only 15% of its three million users watch four or more movies in a month, and thus this move won't affect the bulk of its users. Instead, their full subscription will entitle them to no more than three trips past the velvet rope - the same number of theater visits previously offered under the company's bargain $7.95 per-month plan.
MoviePass CEO Mitch Lowe blamed the change on the small number of users who were taking advantage of the "unlimited" promise.More news: Facebook wants your financial data to expand Messenger, says report
"I should have accelerated the process of reducing the burn faster in hindsight".
Helios and Matheson stock has plunged as investors have grown increasingly doubtful about the viability of MoviePass.
For the last many weeks, MoviePass customers have been annoyed by the many changes to the service, to say the least. Its parent company recently had to take out a $5 million emergency loan to pay its payment processors after missed payments resulted in service outages.
The stock gained 2 cents on Monday after the new plan was announced.