MoviePass Raises Prices, Limits Access to New Movies to Save Itself

MoviePass Raises Prices, Limits Access to New Movies to Save Itself

This is hardly a shock to those who were trying to use the service this past weekend, when subscribers were turned away from being able to see Mission Impossible - Fallout.

It's not clear how "limited" those films will be to MoviePass users.

MoviePass troubles continue with a source claiming the company will soon stop offering tickets to major blockbuster movies.

In a news release, Helios and Matheson Analytics says MoviePass will begin to implement its price change in the next 30 days.

Its possible the latest changes are the only way for the company to survive after it suffered cash outages on Monday and Thursday, leading subscribers to believe the company could be on the verge of folding, according to published reports. MoviePass wasn't ideal, but ostensibly, they were trying to make the movie-going experience accessible to everyone, and were met with angry entitlement.

The app experienced more technical issues over the weekend, with subscribers unable to "check-in" to certain movies.

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"These changes are meant to protect the longevity of our company and prevent abuse of the service. Those films will not be available to MoviePass users in their first two weeks in theaters unless part of a special promotion", according to BuzzFeed.

"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", reads MoviePass' announcement about the new policy.

"We ask for your understanding and vocal support during this time, as we continue to fundamentally change an industry that hasn't evolved much in years", it said. Well, there's now surge pricing (sorry, "Peak Pricing") that you'll need to pay on top of your subscription for popular movies and showtimes.

Currently, it's reported the MoviePass app is showing users: "There are no more screenings at this theater today". "Our community has shown an vast amount of enthusiasm over the past year, and we trust that they will continue to share our vision to reinvigorate the movie industry", said Mitch Lowe, MoviePass CEO in a statement.

MoviePass said a movie distributor could allow earlier viewings through the service by reaching revenue-sharing or other arrangements with MoviePass.

Michael Pachter, an analyst at Wedbush Securities, said the price hike and service cuts could hurt MoviePass as a competitor in the marketplace.

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