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

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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.

About MoviePass
MoviePass is an American subscription-based movie ticketing service. Founded in 2011 and headquartered in New York City, the service allows subscribers to purchase a single movie ticket per day for a flat subscription fee per month. The service utilizes a mobile app, where users check-into a cinema and choose a film and showtime, which results in the cost of the ticket being loaded to a prepaid debit card, which is used to purchase the ticket from the cinema as usual.
The service went through several pricing structures following its original invite-only launch (including those limited to 2 or 3 films per month, and “unlimited” plans, with pricing based on market size), before announcing in August 2017 that it would switch to offering a plan with a single film per day priced at $9.95 per month. The change in business model came with the acquisition of a majority stake in the company by an analytics firm, who sought to widen the service’s reach so it could collect more information on customer viewing habits.
Since its launch, MoviePass has faced objections from major cinema chains, particularly AMC Theatres, over its business model and sustainability.

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

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Those are some cheap tickets

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.

“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.

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

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 US, 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 Inc, 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.