MoviePass, the cheap movie ticket subscription service that has taken the film industry by storm, is about to introduce a controversial change to its service. Previously, you could pay a flat price to see any movie you want, but starting in July, getting tickets for high-demand movies will incur an additional fee.
MoviePass CEO Mitch Lowe told Business Insider that the surge pricing will only happen under certain conditions.
“At certain times for certain films — on opening weekend — there could be an additional charge for films,” Lowe said. The added fee will start at two dollars, but Lowe did not specify how high the pricing can go. Fortunately, MoviePass users who pay for the annual subscription won’t have to worry about surge pricing, as it will only apply to users who are on a month-to-month subscription.
Business Insider reports that the company will also introduce the option to let subscribers get tickets for friends who aren’t on the service for around the retail price of another ticket. MoviePass will also soon allow users to pay extra to see movies in IMAX or 3D, but premium movie pricing won’t be combinable with the adding a friend option.
The MoviePass announcement comes one day after AMC announced its own subscription service that, for $19.95 a month, will let users see up to three movies a week. While more expensive than MoviePass, AMC’s option applies to IMAX and 3D, will give users a discount on concessions, and allows for online reservations.
MoviePass parent Helios & Matheson (HMNY) announced today that it has reached an agreement with institutional investors to issue series B-2 senior convertible notes for $164M, as well as 20,5K shares of preferred stock, in addition to other changes in its movie ticket subscription program.
The news hits in the wake of the world’s biggest theater chain, AMC, announcing a $20/month movie ticket subscription program to rival MoviePass. AMC Stubs A-Listprogram comes with a lot of perks (free 3D, PLF, Imax pricing) and the ability to book tickets far in advance as opposed to the MoviePass app’s last minute purchase feature.
MovePass Mitch Lowe announced changes today that new subscribers as of July will face a $2 surcharge on those titles which the MoviePass mobile app deems popular, particularly event titles during opening weekend. In addition, by August, they’ll be options like ‘add-a-friend’ (which they’ve promised for quite some time) as well as the ability to snap up Imax and RealD tickets. Those added premiums would come at $2-$6 a ticket.
(Excerpt) Read more in: The Verge & Deadline