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MoviePass in a Death Spiral? UPDATE!

Posted By Cliff Tuttle | August 6, 2018

No. 1,544

Image: theverge.com

HERE IS WHAT I WROTE THIS MORNING.  THE COMMUNICATION FROM MOVIE PASS, BELOW, ARRIVED THIS AFTERNOON.  THEY PAINT A SOMEWHAT DIFFERENT PICTURE OF THEIR FUTURE.

We should have realized that it was too good to be true. MoviePass is almost passe’, due to a flawed business model.

The latest MoviePass arrangement is back to the $9.95 monthly rate and a limit of three movies per month. Nothing about premium rates for big movies.  But who would trust them?

We now know that MoviePass will change the deal on a dime and we have nothing to say about it. Moreover, many theaters have stopped accepting your MoviePass without notice. What kind of a contract is that?

Plus, the system doesn’t always work, forcing you to leave or pay anyway. You can’t complain about it to customer service, by phone or by email.  Surprise — customer service crashed long ago.  And when you decide to terminate the service, if you can, they continue to bill you.

Goodbye MoviePass.  We didn’t want to watch that many movies anyway.

CLT

AFTERNOON UPDATE:

Dear MoviePass Member,
 
On August 15, 2018, we will hit the one-year anniversary of MoviePass’ revolutionary price point of $9.95 a month. We’ve experienced tremendous growth, and we know that at times, the frequent changes to our service have been frustrating to you. But through it all, one thing is clear: we’ve gotten people excited about going to the movies again.
 
Over the last year, we have tried different things and we’ve discovered what our members love about our service — the low price point and the ability to go to more than 91 percent of theaters nationwide. We’ve also learned what people don’t like about the service — features including Peak Pricing and Ticket Verification.
 
So now, with almost a full year of learnings under our belt, we’re introducing a new pricing plan that retains the features you love the most and removes the ones you don’t. Most importantly, this new plan will ensure that we can run a sustainable business and continue providing you with an amazing deal to go see movies in theaters.
 
Here are the details:

  • Under our new plan, MoviePass members will be able to see up to threestandard movies a month for $9.95, and be given up to a $5.00 discount to any additional movie tickets purchased. Today, 85 percent of MoviePass members go to three movies or less per month, so these changes cater to the majority of our movie-going community.
     
  • The new plan will include many major studio first-run films, however there will be some exceptions (note that theaters with e-ticketing will include all movies and showtimes with no restrictions).
     
  • We will be suspending Peak Pricing and Ticket Verification requirements for all members in the new plan described above.
     
  • Over the coming days, MoviePass members with a monthly subscription renewing on or after August 15th will be given the option in the MoviePass app to transition to the new plan. Quarterly and annual subscribers will not be impacted until their renewal date.

The truth is, disruption and innovation require staying flexible and having an open mind. We genuinely strive to offer you a service that is a great deal, and we believe that the new plan we’re introducing will be attractive to the majority of our members.
 
It’s been an exciting journey so far, and MoviePass is here to stay. Your endless support, understanding and enthusiasm are greatly appreciated.
 
Thank you,
Mitch Lowe

 

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CLIFF TUTTLE has been a Pennsylvania lawyer for over 40 years and (inter alia) is a real estate litigator and legal writer. The posts in this blog are intended to provide general information about legal topics of interest to lawyers and consumers with a Pittsburgh and Western Pennsylvania focus. However, this information does not constitute legal advice and there is no lawyer-client relationship created when you read this blog. You are encouraged to leave comments but be aware that posted comments can be read by others. If you wish to contact me in privacy, please use the Contact Form located immediately below this message. I will reply promptly and in strict confidence.

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