MoviePass’s death walk/path to profitability continues apace. Last week, the movie ticket subscription service announced plans to both hike its price and make first-run movies unavailable to its customers. Now, another rule has been added: Customers can only see three movies per month, according to the Wall Street Journal. This new policy will take effect August 15.
For the last many weeks, MoviePass customers have been annoyed by the many changes to the service, to say the least. This latest move will surely only rankle people more.
A few weeks ago, MoviePass went down completely after it ran out of money–its parent company was able to borrow the cash to get the service back up and running. Since then, all eyes have been on the company, wondering how long it has until it goes completely kaput. Stock for its parent company, Helios & Matheson, is currently at a little under $0.10 per share–a month ago it was over $47.
MoviePass’s CEO, Mitch Lowe, told the Journal that this new three-movie policy will help the service’s burn rate. He added that about 85% of its customers see a maximum of three movies each month anyway.
Will this move help save the ailing service? We’ll have to wait and see the impact it has on subscriber numbers–currently it has a little over 3 million. As I wrote last week, some analysts aren’t too optimistic about MoviePass’s future. But maybe the next random change to the rules will be the one that really fixes the company.