MINNEAPOLIS (WCCO) — MoviePass, the movie theater subscription service that might sound too good to be true, is trying to work its way through some tough financial issues.
The company previously allowed its users to watch a different film every day of the month in any of the vast majority MoviePass-eligible theaters nationwide, for just $10 a month. On July 31, the company had to temporarily shut down because it ran out of cash.
When it reopened, the company announced it would raise its rates up 50 percent, from $10 a month to $15. It will also add restrictions to what users can see and when.
In a statement, MoviePass CEO Mitch Lowe told CBS: “These changes are meant to protect the longevity of our company and prevent abuse of the service. … While no one likes change, these are essential steps to continue providing the most attractive subscription service in the industry.”
These are also all changes allowed in the service contract all 3 million subscribers agreed on. It has several other normal disclosures:
- MoviePass can increase fees to reflect changes in standard ticket prices, inflation, costs and additional taxes.
- It can suspend its website, or completely end its website, or any part of it, for any reason.
- Payment cards will be charged automatically every month.
- Users who want to cancel won’t face a fee, but they do need to cancel in writing over an email and get confirmation it went through.
- MoviePass has an arbitration clause meaning if the company did something to make a lot of its customers upset, customers have to handle it away from the courts, therefore preventing a class action suit.
AMC Theaters recently launched a subscription service of its own, which costs $20 per month and also has restrictions.