Starting soon, subscribers won't be able to head to the theater once a day to get the full value from their $9.95 per-month plan (a pricing structure that MoviePass continues to massage as it looks to turn a profit).
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.
After announcing a price hike just a week ago MoviePass today announced that they will keep their price at $9.95 a month.
MoviePass says only 15 percent of its more than 3 million users see four or more movies a month, so most customers won't be affected (but it'll come as a blow for the diehards who saw as many movies as their plan and time allowed).
Just last week, the company announced that it would be upping the price of its subscription to $14.95 a month. And even after one movie, it'll pay for itself each month.
MoviePass Chief Executive Mitch Lowe told The Wall Street Journal that the change will take effect beginning August 15. The beleaguered movie theater subscription company is also canceling two other recent changes - "peak pricing" surcharges for popular movies and a ticket verification process - that were meant to stop the company from bleeding money. "While most of our loyal subscribers shared the passion for this new accessible movie experience and experimented fairly, the fact is that a small number have used our business model to a point where it was compromising the business' long-term stability".
Current MoviePass subscribers will be moved to the new plan once their current subscription renews. The company has since paid back the loan, reported WSJ.
Helios and Matheson stock has plunged as investors have grown increasingly doubtful about the viability of MoviePass.
The stock gained 2 cents on Monday after the new plan was announced.