Good news, MoviePass users. After a brief period of the service taking away its very popular movie a day plan, it's been reintroduced. On April 13, the company announced a partnership with iHeartRadio. At that time, they also took the movie a day plan off of their site, which was concerning and frustrating to many subscribers. However, as CEO Mitch Lowe tells it, they merely did that so people would focus on this new partnership. Here's what he had to say about it.
"It's marketing 101. We wanted to focus everybody on this partnership promotion. If people knew the [movie-a-day] plan was coming back, they might not be interested in the iHeartRadio deal."
For this brief period, users of the service were limited to four movies a month. While that still represents a tremendous deal, given the cost of ticket prices currently, some thought it was the beginning of the end for what many thought was too good to be true in the first place. But Lowe assures, they never planned on ditching the movie per day plan.
"We never planned to abandon the flagship product that everybody loves. Any time we've done a promotional package, we've taken the monthly plan off our site."
Helios and Matheson purchased MoviePass last year and in August they began offering their current $9.95 a month plan, which allows users to see one movie a day at a participating theater (and the majority of major theaters do take MoviePass). This has caused their subscriber base to skyrocket and Mitch Lowe expects they will have 5 million users by the end of the year. However, Helios and Matheson's stock recently took a dive and the firm reported losses of $150 million last year, largely thanks to MoviePass. That has led to speculation from experts that the service won't be viable in the long run. But Lowe feels those estimates aren't correct.
"That's just really relative to how much cash we have at any one time in the bank. We have a constantly evolving business model. We're getting more and more occasional moviegoers and cutting back on fraud and abuse. I feel very confident about our trend lines and I know we're going to continue as a going concern and continue to be popular."
Mitch Lowe says that part of the problem has to do with people finding ways to abuse MoviePass. But for those who use the service as intended, the movie a day plan is back. But there are some newer restrictions still in place. Now, MoviePass doesn't allow users to see certain movies more than once. So for those looking to see Avengers: Infinity War a bunch of times using their card may want to rethink their strategy.
During CinemaCon, which took place recently in Las Vegas, some theater owners expressed concerns over the viability of the service as well, as they appear to have no way of actually making money, given that they pull full price for every movie ticket. However, Mitch Lowe has a simple message saying, "See you in 2019." So, at least for now, those who love MoviePass can safely continue seeing movies daily at an affordable rate. This news comes to us courtesy of Variety.