MoviePass is increasing prices by 50 percent, with the rate for watching up to one movie per day going up to $15 per month from $10, and is also blocking subscribers from being able to view most major releases during their first two weeks in theaters. MoviePass exploded to three million subscribers from about 20,000 after it cut monthly rates nearly a year ago to $10 per month from as high as $50. But growing questions are now being raised about its financial sustainability.
MoviePass’ parent company took out a $5 million emergency loan last week to pay its payment processors after missed payments led to service outages for subscribers. CEO Mitch Lowe said in a statement, “These changes are meant to protect the longevity of our company and prevent abuse of the service.” MoviePass has made other changes in recent months to improve its finances, including no longer letting subscribers view the same movie multiple times.
