Mission: Impossible – MoviePass Profitability
MoviePass announced on Tuesday that it will raise its prices and exclude popular movie debuts from its offerings.
The movie subscription company has seen its stock plummet in recent months due to its high costs and lack of subscribers. Parent company Helios and Matheson had shares of $430 in May. However, due to the plummet of their flagship subsidiary, their stock is now down to $0.25.
Last month, MoviePass debuted a $10 monthly price for one movie per day to attract buyers. Because of increased costs, this figure has now risen to $15 per month. Additionally, major movies such as “Mission: Impossible — Fallout” will now be limited from the company’s base subscription. MoviePass subscribers will be able to pay an additional premium for these movies, but they will not be included in the base monthly fee.
MoviePass is officially out of cash. Last week, the company announced that it had no liquid money, which has stifled its offerings. The company explained:
“This is a strategic move by the company to both limit cash burn and stay loyal to its mission to empower the smaller artistic film communities. Major studios will continue to be able to partner with MoviePass to promote their first run films, seeding them with a valuable moviegoing audience.”
The adjustment frazzled many customers, causing some to either complain or cancel their subscriptions. Although MoviePass’ price increase may help the company’s struggling profit margin, it will also likely deter many consumers from subscribing. Amidst all of this, other competitors such as AMC and Sinemia have begun to challenge the subscription service.
MoviePass will need to make more changes if the company wants to stay listed on the Nasdaq.
Featured Image via Wikimedia Commons
