The move follows negative responses that the company received after it announced its intention to raise the base subscription price to $14.95/month just last week. These users will also gain access to up to a $5.00 discount on any additional movie tickets purchased after they see their three allotted movies in any given month.
"We are now creating a framework to provide the vast majority of subscribers with what they want most – low cost, value, variety, and broad availability – and to bring some moderation to the small number of subscribers who imposed undue cost on the system by viewing a disproportionately large number of movies," said MoviePass CEO Mitch Lowe. "We believe this new plan is a way for us to move forward with stability and continue to revitalize an entrenched industry and return moviegoing to everyone’s financial reach.”MoviePass has had a turbulent summer, beginning with the introduction of Peak Pricing in July, rolling out Ticket Verification to all users, and restricting major film releases from its subscribers for the first two weeks of release. In an interview with The Wall Street Journal today, MoviePass CEO Mitch Lowe confirmed that all of these changes are now being abandoned.
After one week of analyzing customer responses and internal debate, Mr. Lowe said MoviePass is abandoning those changes. The price increase and restriction on new releases are being revoked, there will be no surcharges, and users will no longer have to upload photos of tickets they buy to prove they are not committing fraud.This means that the three films subscribers will be able to see each month will "include many major studio first-run films." The company says that about 85 percent of its subscribers already only see three or fewer films per month, leading to the decision to install the new plan for its entire subscriber base.
“We’ve been whipsawing people back and forth,” said Mr. Lowe. “I think we’ve got it now.”
Still, it's a major change in comparison to what MoviePass announced one year ago this month, allowing users to see one movie per day every month at $9.95. The new model is akin to what MoviePass was before it surged in popularity last year, when it offered price tiers like $50/month for six movies.