The company is trying to burn less cash so it can stay in business.
Monday's announcement does not specify limitations on titles, though it does confirm the new plan "will include many major studio first-run film" when changes take effect with renewals on or after August 15. Now, another rule has been added: Customers can only see three movies per month, according to the Wall Street Journal.
"We are now creating a framework to provide the vast majority of subscribers with what they want most - low cost, value, variety, and broad availability - and to bring some moderation to the small number of subscribers who imposed undue cost on the system by viewing a disproportionately large number of movies", Lowe said. The company already has a three-movie plan for $8 a month.
As part of its new model, MoviePass is doing away with a bunch of other changes, too. And it will no longer enforce ticket verification, which required users to take a picture of their ticket stub and submit it to the company as a way to stop abuse of the service. MoviePass recently announced that it wouldn't be letting customers get tickets for any big release in the first two weeks of its opening, which caused a predictable backlash. "However, any industry-wide disruption like MoviePass requires a tremendous amount of testing, pivoting, and learning", MoviePass CEO Mitch Lowe said in a statement.More news: Alleged Russian Agent’s Contacts Also Included Trump Aide
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"I should have accelerated the process of reducing the burn faster in hindsight".
The stock plunged from $39 last October to just 8 cents last month.
Early Monday morning, Moviepass announced that it's killing the unlimited movie plan that saw it rocket to fame and financial ruin.
MoviePass made headlines last month when the app suffered an outage because its parent company couldn't afford to pay for customers' tickets. The company has since paid back the loan, reported WSJ.