SALT LAKE CITY — News about MoviePass didn’t get any better this week.
According to BuzzFeed News, MoviePass users can expect a price hike in the next 30 days from $9.95 to $14.95 as well as a limit on how many movies they can see with their pass.
"Fans will also find it harder to use their subscription to see blockbuster films opening on more than 1,000 screens. Those films will not be available to MoviePass users in their first two weeks in theaters unless part of a special promotion," according to BuzzFeed.
The company said it made the decision "to both limit cash burn and stay loyal to its mission to empower the smaller artistic film communities," according to BuzzFeed.
"These changes are meant to protect the longevity of our company and prevent abuse of the service," MoviePass CEO Mitch Lowe said, according to BuzzFeed. "While no one likes change, these are essential steps to continue providing the most attractive subscription service in the industry."
Sources told Business Insider on Monday that Lowe said in “an all-hands meeting” that the app won’t make upcoming big releases available to subscribers.
In fact, that trend will reportedly continue for the near future.
Lowe said upcoming films “Christopher Robin” and “The Meg” will not be available to subscribers. Both of those movies will be hitting theaters over the next two weeks as major releases.
“The company has fallen on incredibly hard times as it tries to find a financially feasible business model,” according to Business Insider.
The news comes on the heels of drama from the last weekend when MoviePass customers complained on Twitter that they didn’t have access to see “Mission: Impossible - Fallout,” which I wrote about for the Deseret News.
Lowe said in a statement before the weekend that some films won’t always be available from MoviePass.
“As we continue to evolve the service, certain movies may not always be available in every theater on our platform. This is no different than other in-home streaming options that often don’t carry the latest shows or movies that may be available on other services,” he said.
MoviePass stopped working last Thursday night too because the company’s owner, Helios and Matheson Analytics, ran out of money, according to my report for the Deseret News. The company borrowed $5 million to bring the app back online.4 comments on this story
HMNY filed a statement with the Securities and Exchange Commission indicating that the company borrowed the money to fix a “service interruption.”
The future doesn’t look bright for MoviePass. HMNY's stock has fallen over 98 percent so far this year, with its stock closing on Monday at 80 cents.
And even though the company “might pull another rabbit out of its hat by tomorrow,” the future seems doubtful for now, according to Deadline.
One distribution insider told Deadline, “I think they’re done.”