They tried charming customers with dogs in November, and now it looks like they’re moving on to the next phase of pleasing users by introducing new subscriptions plans.
The company gained mainstream recognition in August 2017 with a $9.95 per month plan that allowed users to see one 2D movie per day. Problems persisted and changes were continuously made to the terms with the company eventually restricting users to three movies per month.
Now, MoviePass is kicking off the new year with three subscription plans. All three tiers allow you to see three movies per month (up to 36 per year). However, the more you pay, the less restrictions on types and showtimes there are.
“Select” is the base tier, and it starts at $9.95/month. However, it can raise to $12.95 to $14.95 depending on geographical location. This is similar to the current subscription offer where users only get access to certain films on certain days.
“All Access” starts at $14.95/month (and can raise to $17.95 to $19.95 depending on geographical location). This is similar to “Select,” but film and day restrictions are removed.
“Red Carpet” is the highest tier. It starts at $19.95 per month (and can raise to $21.95 to $24.95 depending on geographical location). You also aren’t restricted to certain films or days. Users can also use one of the three movies per month on a single premium movie. Premium movies include 3D, IMAX 2D and IMAX 3D.
MoviePass is currently selling the plans at a discounted rate. “All Access” is available for $119.95 per year (as opposed to $179.40 you would pay by doing it per month). “Red Carpet” is available for $149.95 per month (as opposed to $239.40 you would pay by doing it per month).
Both plans are discounted even more if you purchase more than one subscription. Based on a yearly rate, per subscription, “All Access” reduces to $99.95 and “Red Carpet” reduces to $139.95.
In addition to the plan changes, chief executive Mitch Lowe (who previously worked as a Netflix and Redbox executive) will step down from the day-to-day operations of the company to focus on long-term strategy. Khalid Itum, a MoviePass executive vice president, will step up in his place.
“I don’t believe that today people trust the MoviePass brand,” Itum tells the New York Times. “We have to earn back that trust. And we’re going to earn it back not by spending on marketing but by fixing the product.”
The new three-tier subscription plan goes into effect Jan. 1, and you can view more information on their site.
MoviePass and their past issues
After months of trouble, MoviePass were unable to process their user check-ins in July due to lack of funds according to parent company Helios and Matheson. The following day, the company borrowed $5 million to pay its merchant and fulfillment processors who temporarily refused to process payments after Helios and Matheson missed a payment, according to CNN.
The subscription service launched in 2011 but began gaining steam in 2014. Users pay a monthly fee to receive a card that permits them to check in and purchase movie tickets for no additional cost. Initially, the plans were offered at $35 for 2D films or $45 for Real3D and IMAX.
The company was catapulted to mainstream recognition in August 2017 when they announced a discounted plan for $9.95 per month. It allowed for one movie per day each month excluding 3D, IMAX and other special engagements. The subscriber count quickly began rising, hitting 2 million in February 2018, but it soon became apparent they were struggling to keep up with demand.
In April 2018, they removed the unlimited plan, restricting users to one movie per week for the same $9.95 rate. They also rolled out a restriction where once a movie had been watched once, the same user couldn’t check in to watch the movie again. Additionally, the company began requesting that some users send proof of purchase by taking a picture of their ticket stub before they would be allowed to check in and watch another movie.
The unlimited plan was soon reinstated along with the addition of surge pricing for popular titles, but the company still reported a $40 million loss in May leading to business moves such as selling merch.
In June, AMC announced AMC Stubs A-List, that allowed users up to three movies of any kind (including 3D and IMAX) per week for $19.95 per month. The move came after a feud with MoviePass where AMC threatened to sue and MoviePass later pulled the option to check in at some of their locations.
Obviously, MoviePass are not here for their new competitor.
AMC has repeatedly disparaged our model as a way to discourage our growth because all along they wanted to launch their own, more expensive plan. We want to make movies more accessible, they want more profit.
— MoviePass (@MoviePass) June 20, 2018
What do you think of MoviePass’s new three-tier subscription plan? Will you try it? Let us know in the comments!