Lots of people have suggested MoviePass is too good to be true. And the company now appears to be proving those naysayers right. This is because MoviePass has ditched the unlimited movies plan for new subscribers. And there’s no guarantee it will return.
For those not up to speed, in August 2017, MoviePass started offering unlimited movies in theaters for just $10/month. Since then, two million people have signed up for the deal. Which has led MoviePass to change tack with a slightly less impressive offering…
Game Over for Unlimited Movies?
MoviePass has been signing people up to its unlimited movies (one-per-day) plan for over seven months. However, new subscribers currently aren’t being offered that same deal. Instead, for their $10/month they can only watch up to four movies every month.
MoviePass is also throwing in a three-month subscription to iHeart Radio All Access. However, unless you opt out of that within the three months you’ll have to start paying $10/month for that on its own too, doubling your monthly outlay to $20.
— Hollywood Reporter (@THR) April 26, 2018
When The Hollywood Reporter asked MoviePass CEO Mitch Lowe whether the unlimited plan would be returning he said, “I don’t know”. And MoviePass has since made intentionally vague statements which suggest the unlimited plan may or may not return.
Reports suggest MoviePass is losing $20 million every month as it has to pay the movie theaters the full asking price for each ticket its subscribers purchase. Which might explain why the company seems unsure whether it can continue being quite so generous.
Can MoviePass Survive Long Term?
Everything seems a little up in the air at the moment. Even MoviePass itself doesn’t appear to know whether it will start offering unlimited movies to new subscribers again in the future. And that fact alone should worry anyone willing MoviePass to succeed.
Surely no business can burn through the kind of money MoviePass is and survive. So no one should be surprised that MoviePass is trying something less damaging to its coffers. The problem MoviePass needs to solve is how to stop its subscribers from bankrupting it.
Update on May 3, 2018: MoviePass Unlimited, which offers one movie every day for $9.95/month, is now available once again. And the iHeartRadio plan is listed as a “limited time offer”.
If this is the first you’re hearing about unlimited movies you should read everything you need to know about MoviePass. And if you have figured out how MoviePass is possibly going to survive longterm with this business plan you should let the company know.