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MoviePass launches one-year subscription plan for $6.95 a month

Going to the movies
Matthew Staver | Bloomberg | Getty Images

MoviePass, the subscription movie ticketing service, just launched its cheapest plan yet: $89.95 per year, paid up front. That includes a $6.55 processing fee, meaning the monthly price before the fee comes out to around $6.95, "Deadline" reports.

This is the second time in the past few months that MoviePass has dropped its prices to lure new customers. In August, the company moved from a tiered pricing plan that ranged from $15 to $50 per month, to a flat fee of $9.95 per month.

MoviePass says the offer, available now for a "limited time," will only last for one year, billed up front, and then revert back to $9.95 per month. As "Slash Film" points out, current users can switch over to the yearly plan, but new subscribers can only choose the yearly plan until the offer period is up. MoviePass also says it won't be offering refunds if you cancel an annual subscription before the year is up.

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"We are entering the prime movie going season, so now is the perfect time to take advantage of the MoviePass movement," Mitch Lowe, CEO of MoviePass, said in a statement.

After the price drop this summer, MoviePass saw a massive boost in subscriber numbers. Last December, the service only had around 20,000 subscribers. This October, it had more than 600,000, according to MarketWatch.

But the company's business plan hasn't been so eagerly welcomed in the movie industry. In August, AMC Theaters, the largest movie chain in the U.S., threatened MoviePass with a lawsuit and claimed that the company's business model was unsustainable. MoviePass pays theaters the full price for each ticket, except at a few theaters where it gets a discount, "Wired" reports. The average cost of a movie ticket in North America is $8.84, according to "The Hollywood Reporter," which means if subscribers on the new plan attend just one screening per month, MoviePass will already be losing money.

The company's plan to make money is a little unclear. Lowe has said that MoviePass subscribers spend more money on snacks than the average movie-goer, and that those costs will help make up the ticket price, according to "Business Insider." It also might sell your data: this summer, the company sold a majority stake to the data firm Helios and Matheson Analytics, and it hopes to eventually use the data from subscribers for marketing and advertising materials.

"The Verge" has reached out to MoviePass and will update with any new information.