It’s no secret that MoviePass isn’t in the best of health financially; the company ran out of cash last week which resulted in it borrowing $5 million, so it could resume services after subscribers found themselves unable to order tickets for “Mission: Impossible – Fallout” over the weekend. The lack of cash has resulted in a couple of unwelcome outcomes for MoviePass subscribers such as the Standard Plan being hiked from $9.95 to $14.95 and restricted access to watching big releases such as “The Meg” or “Christopher Robin.”
As reported by Business Insider, the news comes after an ‘all-hands’ meeting held by MoviePass CEO, Mitch Lowe, where he intimated that the restriction on offering tickets for big releases would continue for the ‘foreseeable future.’ Tickets to movies opening on 1,000 or more screens will be limited for the first two weeks, and there are unspecified plans to implement tactics to prevent abuse of the MoviePass service.
As a service, MoviePass is proving popular with moviegoers although it struggles to rake enough cash in to pay its bills. This is what happened when it couldn’t afford to pay its payment processor which resulted in a service outage shortly before the company borrowed the $5 million. The MoviePass subscription is too good to be true, and the $5 million it recently borrowed likely won’t last too long unless the subscription format changes; i.e., become way more expensive. The reason for this is that while the subscriber only pays $7.95/$9.95 per month, MoviePass pays the full ticket price for every movie that the subscriber goes to watch. You can see how this is not a viable business model. The price hike to the standard plan will go into effect within the next thirty-days, according to MoviePass.
How do you feel about the standard plan going up to $14.95 and tickets to blockbuster films being restricted for the first couple of weeks?