MoviePass is planning to implement a few changes to its services that users will be feeling by the end of the summer with the first being one they’ll feel in their pockets.
The movie-theater subscription service, which previously allowed users to pay a flat fee to watch as many movies as they want, will introduce additional fees for films in high-demand. MoviePass CEO Mitch Lowe tells Business Insider that the pricing will only be incurred under very specific circumstances.
“At certain times for certain films — on opening weekend — there could be an additional charge for films,” Lowe explains. While he does not clarify just how high the pricing can go, he states that added fees will begin at two dollars.
It’s also noted that surge pricing will not apply to annual subscribers, as it will only be presented to those on the month-to-month subscription. According to Lowe, the new change is intended to encourage more traffic for blockbuster films to MoviePass theater partners in the middle of the week and after a movie’s opening weekend. He also says that its is designed to "make sure that we can continue to offer a valuable service and support the whole enterprise.”
The better news is that MoviePass will also be introducing an option to get tickets for friends who do not have the service, paying about the same retail price as a regularly priced ticket. In addition, subscribers will be able to pay a premium fee to purchase films in 3D and IMAX, but this premium option cannot yet be combined with the option to bring a friend.
The news arrives on the heels of AMC Theatres’ new subscription service, AMC Stubs A-List, which lets users watch three movies a week for $20 a month, including IMAX and 3D options. According to Lowe, the introduction of some competition only confirms “that subscription is really here to stay.”
"It's been tough when you have the president of AMC essentially for eight or nine months telling everybody that our subscription was not sustainable, and then he comes out with a program that essentially could cost him $60 or $80 a month to pay the studios their minimums and collecting $19.95," Lowe added of AMC CEO Adam Aron. "So it is a little bit kind of funny that it's pretty clear what he wanted to do — clear the way for his own subscription program and not have competition."
At the moment, MoviePass is still facing a major financial deficit, with its parent company Helios and Matheson Analytics predicting its losses to reach $45 million in June as subscribers grow.
