Embattled MoviePass Unveils New Three-Tiered Pricing Structure
The company also announces that new executive vp Khalid Itum is taking over day-to-day operations from CEO Mitch Lowe.
Embattled subscription service MoviePass is changing its pricing structure once again, the company announced Thursday.
Under the new plans, customers — depending upon where they live — will pay anywhere from $9.95 to $24.95 a month to see three movies a month for a total 36 movies a year.
Additionally, day-to-day operations are being turned over to Khalid Itum, MoviePass' new executive vp, while CEO Mitch Lowe will focus on overall strategy.
The changes were announced by Lowe, Itum and Ted Farnsworth, chairman-CEO of parent company Helios and Matheson, which has seen its stock decimated because of losses related to MoviePass. Farnsworth said the new pricing model will serve as a foundation in reaching new members and regaining "positive momentum" in the marketplace. Helios stock trades for less than two pennies a share and is in danger of being delisted by NASDAQ.
The rejiggered pricing options will take effect Jan. 1. The updated offerings are being communicated to current subscribers, who can elect to remain on their existing plan.
Customers living in cities where movie tickets cost more, such as in Los Angeles and New York City, will have to pay more across the board. The cost of the three plans is based on which of three zones a person lives in.
Those choosing the "select" plan will pay $9.95 to $14.95 a month or more to see 2D movies only. Also, films won't be available on opening weekend, at least not for the near future. The "all access" plan, ranging from $14.95 to $19.95, will be able to see any three 2D movies of their choice at any point in a film's run.
The most expensive option is the "red carpet" plan, which starts at $19.95 a month and tops out at $24.95. It is the same as the select plan, except that one of the three movies can be seen in 3D, Imax or a premium format.
In late July, MoviePass raised its monthly price to $14.95 and began limiting first-run movies. Days later, the rules changed again when MoviePass decided to keep its monthly fee at $9.95 but reduced the number of titles a patron can see to three per month, versus one film a day.
"Change is necessary. We won the hearts of millions of moviegoers — now we need to win back their confidence," Lowe added in Thursday's statement. "We realized that the past year brought our subscribers many modifications and even some surprises, some of which weren't well received. But we listened, we reassessed and we believe we are primed to offer the American consumer the absolute best offering across America in 2019 and beyond."