Helios and Matheson offers new subscription model for MoviePass
MoviePass, a majority-owned subsidiary of Helios and Matheson (HMNY), announces its new subscription plan and business model effective August 15. MoviePass' new subscription plan retains its industry-low monthly subscription rate of $9.95 and at the same time creates a long-term and sustainable business model. The new plan will include many major studio first-run films. The company said, "For our subscribers who have migrated to the new subscription plan, we are suspending Peak Pricing and Ticket Verification. MoviePass is available at 91% of the theaters. We have heard - and we have listened to - our MoviePass Community and we will not be raising prices to $14.95 a month. The new plan is focused on usage by the bulk of our subscribers who have historically used MoviePass to attend three movies or fewer a month. Additionally, the new plan addresses past misuses which imposed undue costs on the system, including ticket scalping, unauthorized card usage and other activities, which in the past necessitated the use of certain remedial measures that have sometimes been inconvenient for our subscribers. Beginning August 15, MoviePass subscribers will transition to the new plan upon their renewal, which gives subscribers up to three movies a month for $9.95, and up to a $5.00 discount for any additional movie tickets. Because only 15 percent of MoviePass members see four or more movies a month, we expect that the new subscription model will have no impact whatsoever on over 85 percent of our subscribers." Monthly subscribers will be given the opportunity to subscribe to the new plan when their current plan comes up for renewal beginning August 15. Annual subscribers will not be affected by this plan until their renewal dates. Any subscriber can still cancel anytime.