MoviePass has had some money problems lately and now things have caught up with the company. Last week, the company ran out of money, which caused service outages that forced the company to borrow an emergency $5 million. Those service issues continued through the weekend and now the company has announced a price increase. Hopefully, that helps ease some of the problems.
MoviePass announced that its standard one movie per day plan will increase from the current $10 per month to $15 per month. That change will go into effect “within the next 30 days”. Also, tickets to first-run movies opening on at least 1,000 screens will be limited for the first two weeks. MoviePass is also limiting ticket availability to blockbuster films going forward, which it began doing over the weekend.
“This is a strategic move by the company to both limit cash burn and stay loyal to its mission to empower the smaller artistic film communities,” said the company in a press release. You should note that film studios will be able to partner with MoviePass to promote their first run films, and additional tickets to widely released first run movies can be made available to MoviePass customers through promotion.
The idea is to reduce the cash burn by 60 percent. Hopefully this helps the company.
Source EngadgetFiled Under: Entertainment News