SALT LAKE CITY — MoviePass announced a price drop Friday to $6.95 per month for new customers, with a one-time processing fee of $6.55, making a yearlong subscription a grand total of $89.95.
MoviePass is a Netflix-like subscription service that allows customers to pay a monthly fee to see one new movie per day in theaters.
In February, MoviePass cut its price to $7.95 per month, according to the Deseret News. The new price model includes a $19.95 processing fee, which brings the total to a combined $115.35 for a year.
MoviePass originally charged $9.95 per month for its service.
Right now, the average movie ticket price sits at $8.97 per ticket, according to The Wrap.
MoviePass currently operates in 91 percent of theaters and has about 2 million customers, according to a press release.
"Our vision has always been to make the moviegoing experience easy and affordable for anyone, anywhere," said MoviePass CEO Mitch Lowe. "With the current growth and support that we've seen within the last several months, our studio and exhibitor revenues and other marketing partnerships have motivated us to lower the price once again, offering movie lovers greater access to MoviePass."
According to The Wrap, Lowe said MoviePass wants to build its subscriber base quickly to at least 3 million people “and then leverage that audience to try to renegotiate for more cuts of popcorn and drinks revenue. The company already has a concessions deal with some chains.”
AMC Theatres said MoviePass won’t be able to handle its business given the amount it pays for tickets and how much money it is receiving back from customers.
However, Helios and Matheson Analytics announced in February that it bought more stock in MoviePass, according to the Deseret News. The company, which collects data, advanced MoviePass $45,525,000 to help the company run its business.1 comment on this story
Lowe came under fire for comments he made in March about collecting people’s data.
“We know all about you,” he said, according to a report from Media Play News. “We watch how you drive from home to the movies, we watch where you go afterwards.”
Lowe later apologized in an open letter he released on MoviePass’ website.
“First and foremost, I apologize for these comments and the concern they caused. At MoviePass, we take customer privacy extremely seriously,” he wrote in the open letter.