Has MoviePass finally found the solution?
MoviePass, the subscription-based movie ticket service has changed its offerings once again, and it thinks that it has finally solved its expenses problem.
The company originally offered one movie a day for $10 a month, but this cost them heavily with consumers that actually took advantage of the daily opportunity. In fact, the company explained that 15 percent of MoviePass customers were generating 40 percent of the company’s stock, which is an astounding portion.
After this, they decided to raise the price to $15 per month and exclude major blockbuster films like Mission Impossible: Fallout. This received extreme backlash from users, especially because the company did not notify its consumers about the change.
Finally, in the most recent transition, they have decided to offer three movies a month for just $10. CEO Mitch Lowe believes this is the perfect plan for its consumers. Although they will lose some of their clients because of the limited offering, Lowe believes that the majority of its customers want just the three movies.
This new plan will certainly save them an exorbitant amount of money because of the high cost of funding 30/31 movies a month. Although parent company Helios and Matheson still has a stock price of roughly seven cents, this change may be able to turn their value around.