It's been a rough road for MoviePass the last several months, but the owners and investors are remaining optimistic as they roll out some new rules for their subscription policies.MoviePass was founded in 2011 and has grown to over 2 million subscribers, many of which joined when the company decided to drop their prices down to $10 a month last August. Although this may sound like a good thing, MoviePass loses money on virtually every subscription seeing as how they have to pay full ticket prices for their members to see movies. In this day and age, the $10 a month subscription cost is about the same as one movie ticket at most theaters nationwide.
It makes you wonder how companies like this can stay afloat, but MoviePass says they have the answer. Going forward, one subscription will only allow four movies per month with its $10 plan. The company calls it a temporary promotion (most would call it a demotion) that CEO Mitch Lowe confirmed is ongoing for the time being. Lowe claimed that 88 percent of subscribers see two or fewer movies per month, so the change only affects a small percentage of their members.
Another change is MoviePass is now disallowing repeating viewings of select movies, as they're stating encourages people "to enjoy something different." Movies on the no-repeat list aren't specified so, unless you have a subscription and have tried to see a movie more than once a month, it remains a mystery for now.
It's also rumored that MoviePass members are required to upload photos of their ticket stubs to help prevent fraudulent activity on with their subscriptions.
On an upside, if you're not subscribed to any music streaming services, the new MoviePass subscription also offers three-month subscription packages to iHeart Radio All Access, but you're required to opt out of it on your own or it will automatically switch over to a $10 a month subscription of its own.
Ted Farnsworth of Helios and Matheson Analytics, who owns the vast majority of the company, stated:
"I'm not worried about the viability of MoviePass at all. Our customer service has dramatically improved, we've worked out the little bugs with the technology, and we have plenty of money to get through the next year."
Good news to hear for the next year indeed, but it's going to take a lot more than excellent customer service to improve on the $20 million of monthly losses since last September. However, maybe there's something we don't know, and MoviePass still has a few tricks up its sleeve. Let's not forget that it is a pretty remarkable service they're offering. Even with the cuts in their promotions, they're still basically offering a subscription that cuts the cost of one movie ticket into a fourth.
Lowe seemed to shrug off the notion of anything negative happening to the company any time soon by stating:
"We love the idea that everybody thinks that we're going to fail. It's exactly what people told us at Netflix and Redbox. And then suddenly they all turned around and realized we were too big to stop."