MoviePass is gearing up to drastically cut its plan, scaling back to just three movies per month.
The popular movie subscription service currently allows moviegoers to see one movie a day in theaters with certain limitations but has been adjusting its offerings as it battles massive losses. The change is set to take effect Aug. 15, the company said.
The company also announced it would no longer raise the price of its plan to $14.95 per month, reversing an announcement last week. The price will stay at $9.95 per month.
MoviePass has made several tweaks to its service in recent months as it seeks to appease theaters and turn a profit. The company had previously limited users to seeing each movie only once and introduced peak pricing for more popular movie times.
Under the new plan, peak pricing and ticket verification will be suspended. Users will be transitioned to the new plan upon their next service renewal and can receive discounted tickets after hitting their allotted three movies for the month.
"Any industry-wide disruption like MoviePass requires a tremendous amount of testing, pivoting, and learning," CEO Mitch Lowe said in a statement.
Just 15 percent of MoviePass users see more than three movies each month, the company said. But that segment had been "stressing the system," said Ted Farnsworth, chairman and CEO of MoviePass' parent company Helios and Matheson Analytics.
"We believe this new business model will immediately reduce our burn so we can refocus our efforts where they belong," Farnsworth said in a statement.
