MoviePass raises prices and limits access to new films after service outages
The wildly popular "Netflix for movie theaters," MoviePass, has been adding restrictions as it struggles to maintain its seemingly unsustainable business model. After spending considerable time operating at a loss, MoviePass experienced an outage on Thursday (7/26) as parent company Helios and Matheson Analytics reportedly ran out of money. The company borrowed five million to pay its "merchant and fulfillment processors," as USA Today reports, but troubles with the MoviePass app continued throughout the weekend and on Monday, when users experienced messages like the one in the picture above for most theaters.
In an effort to continue operations, MoviePass announced some more service changes on Tuesday (7/31) in a press release. As part of a "cost-reduction plan," they plan to raise prices by 50%, from $9.95/month to $14.95/month, "within the next 30 days." They also say that access to movies showing in 1,000 or more theaters will "be limited in their availability during the first two weeks, unless made available on a promotional basis."
They also note in the press release, "In an effort to maintain the integrity of the MoviePass mission, to enhance discovery, and to drive attendance to smaller films and bolster the independent film community, MoviePass will begin to limit ticket availability to Blockbuster films."