There’s a new bit of MoviePass news that subscribers of the service may want to know about.
The MoviePass news is that the company is changing its subscription service. Starting on Aug. 15, 2018, subscribers will be switched to a new subscription model the next time that their plan comes up for renewal.
Subscribers wondering what this MoviePass news means for their subscriptions should know a few things. First off, the company says that it will not be increasing the monthly subscription price to $14.95. It will instead be keeping it at the current price of $9.95.
While the low price is still good MoviePass news for subscribers, there are other changes. This includes a new limit on how many movies subscribers can see per month. The new limit is three movies a month. After this, subscribers will have to pay for tickets, but can get a $5 discount through the service.
MoviePass says that this change won’t affect the majority of its customers. It notes that only about 15% of its subscribers see four or more movies a month through its service. The company says this should help cut down on abuse of the system.
“We believe this new business model will immediately reduce our burn so we can refocus our efforts where they belong: making a permanent and positive change in this industry by creating an amazing theater-going experience and building a company that continues to benefit our nationwide community,” Ted Farnsworth, Chairman and CEO of MoviePass’ parent company, Helios and Matheson Analytics (NASDAQ:HMNY), said in a statement.
HMNY stock was up 89% as of Monday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.