MoviePass Tries to Revive its Business by Launching New Subscription Plans
- MoviePass launches three new subscription plans
- Balance between cost and value of service is now the goal of the company
- MoviePass going through extensive restructure and business plan realignment
MoviePass has announced their intention to offer three new subscription plans to their customers by January. “Select”, “All Access”, and “Red Carpet”, starting at $9.95, $14.95, and $19.95 respectively will all offer their subscribers three showings per month. The difference between the three tiers will be mainly on the limitations that are induced to the user. For example, the “Select” plan only allows picking movies and viewing times from a limited pool of options. The “All Access” package lifts these restrictions so you can choose any showtime of any movie. The “Red Carpet” adds one premium screening (IMAX or RealD 3D) on top of what comes with the “All Access” plan.
Now, all of these prices are nowhere near to what was offered by MoviePass last summer when subscribers paid $10/month for 30 movies per month (1 a day). However, the theatrical subscription service has gone through rough times and wasn’t able to establish themselves financially in the market, so the troubles affected their operations, subscribers started rightfully complaining about a poor level of service, experiencing outages, and many finding themselves blocked out from movies they wanted to watch. All that said, these new plans are the best that can be offered, in an effort of MoviePass to stand on its feet financially.
The company acknowledges the fact that the previous financial planning decisions that inflated their subscriber base extremely rapidly were the culprit for their economic downfall, so they are planning to restructure their approach completely. Executive vice president Khalid Itum will take over the running of the business, while the former Netflix executive and current CEO of MoviePass will focus on the development of a new long-term strategy. As Itum said in a NYTimes interview: “I don’t believe that today people trust the MoviePass brand. 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.”
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