MoviePass The subscription service, which allows consumers to pay a monthly fee to watch unlimited movies in theaters in the US, lowers prices once again. The company announced today that they are now offering their service for $ 6.95 a month, compared to the current price of $ 9.95 a month when customers sign up for a one-year subscription commit. This works at a flat rate of $ 89.95 a year.
The deal is a temporary promotion as opposed to a permanent price change, but MoviePass has not said how long the offer will be valid. However, it is open to both new and existing subscribers – the latter would save 25 percent on their current subscription when they switch to the annual plan.
This is not the first time that MoviePass has lowered its prices. 19659002] When the company spent their $ 9.95 a month, a movie a day plan in August, of $ 15 for 2 movies a month (or more in select markets like LA and NYC, and as high as $ 50 ), saw it had so many new applications difficulties to meet demand . Within days, 150,000 new users joined, and in September, the company said the number of subscriptions had risen to 400,000.
Starting in October, MoviePass grew to over 600,000 subscribers . 19659002] Also, said its subscriber churn dropped from 4.2 percent in the first month to 2.4 percent in the second month .
The service is now majority owned by data company Helios and Matheson Analytics Inc. (HMNY) after sold $ 27 million in August. The company increased the purchase price in October to $ 28.5 million and increased its stake from 53 percent to 53.71 percent. In November, HMNY announced plans to raise $ 100 million to further increase its investment.
This influx of capital has enabled MoviePass to continue subsidizing the cost of this subscription in favor of passport holders. obviously not profitable at this point. It's going in the red as it focuses on growing subscribers.
MoviePass finally hopes to convince theater owners to increase their customer base so that profits can be saved, as CEO Mitch Lowe reports in . Variety in August. It also believes that it might be able to collect the data that will be collected on its subscribers in the future.
In the meantime, MoviePass is a ridiculously cheap deal for moviegoers. It now works at 91 percent of theaters in the US, though not all are satisfied with the service.
AMC threatened the start-up with legal action in August, and announced that MoviePass was "not welcome here" "It said it would try to find a way to escape it believes that lowering the cost of ticket prices would devalue the theater experience altogether.
Others, such as Regal and Cinemark, are taking a wait-and-see approach, Lowe said earlier.
"HMNY remains the biggest backer of MoviePass as it outperforms any other cinema service and bothers the movie industry," said Ted Farnsworth, Chairman and CEO of HMNY, in a statement on today's new, lower pricing. "We look forward to it 'Helping MoviePass expand its reach and modernize the film industry.'
The annual subscription is now available to MoviePass.com
SOURCES: TECHCRUNCH.COM GSMARENA.COM MACRUMORS.COM
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