At the end of July, the service went dark because the company ran out of money, forcing MoviePass to borrow $5 million in cash to get the service back online. MoviePass pays full price for each ticket a subscriber uses, meaning that after a subscriber sees a second movie in a month, the company is operating at a loss. As mentioned, there will be a new limit of three movies per month; however, MoviePass customers who want to see more films than that will receive a discount of $2 to $5 for every movie afterward. "We have heard - and we have listened to - our MoviePass Community and we will not be raising prices to $14.95 a month", the service said in a statement on Monday. Lowe said in an interview with the Wall Street Journal that the move will reduce the company's cash burn rate by more than 60 percent and make it "more manageable" to become profitable.
Under the previous plan, customers could see one movie per day in theaters for a monthly subscription fee. Peak pricing and ticket verification (where subscribers had to take a picture of their ticket stub) have been suspended, while subscribers can once again see first-run major studio films.
The change replaces a previously announced plan to raise prices to $14.95 a month.
Now, many of those changes are being rolled back, though MoviePass isn't returning to its "good old days".More news: Pepsi's first female CEO is stepping down after 12 years
Capping movie visits at three per month is a dramatic shift from the company's original promise, but MoviePass says most subscribers won't actually be affected. That reverses a change announced last week that would have cut access to blockbusters within the first two weeks of release.
Helios and Matheson Analytics, the company behind the struggling-yet-popular MoviePass, has launched another Hail Mary in an attempt to turn a profit.
MoviePass CEO Mitch Lowe blamed the change on the small number of users who were taking advantage of the "unlimited" promise. The stock rose 3 cents to 10 cents per share in early trading Monday, soaring over 45 percent on the new plan news.