MoviePass limits users to 3 movies per month in pivot to survive

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MoviePass is cutting it short.

As a part of this new plan, MoviePass subscribers will also get a $5 discount on any additional movie ticket that they purchase over and above the monthly three free tickets.

The company said in a statement that the new limit, which is supposed to reduce the amount of cash MoviePass burns through, will only affect the 15 percent of its subscribers who see more than three movies per month using the service.

With all of these issues percolating in the background, MoviePass has made a decision to change its tactics and will not raise its monthly subscription price after all. We are now creating a framework to provide the vast majority of subscribers with what they want most - low cost, value, variety, and broad availability - and to bring some moderation to the small number of subscribers who imposed undue cost on the system by viewing a disproportionately large number of movies.

Currently, MoviePass subscribers can see one movie a day for $9.95 per month.

MoviePass, which generally pays movie theaters full price for each ticket while only charging users their subscription fee, has been struggling financially in recent months.

As stock prices and subscriber numbers continue to slip for the subscription service, MoviePass, the online service has announced a new model for subscribers.

Now, more than 3 million people subscribe to MoviePass.

The change, which takes effect August 15, will reportedly enable MoviePass to stay in business. Last week, MoviePass announced subscribers would be limited to certain blockbuster film within the first two weeks of release. The company has scrapped its controversial plan to increase subscription prices to $14.95 a month, but in turn it will limit subscribers to three movies a month. Also eliminated are peak pricing and ticket verification.

"They will not be affected at all by this program, and even better, they'll stop hearing MoviePass is going out of business", Lowe told WSJ.

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