MoviePass To Raise Prices, Block Out New Releases To Try To Save Itself | Forbes

As much as I rolled my eyes at the constant drumbeat of “Is this the end of MoviePass?” every time it made a policy change, this did seem like the beginning of the end.

As of this morning, MoviePass has rolled out a new strategy. It includes (so sayeth the press release) an eventual increase in price to $14.95 per month and a block on new releases opening on over 1,000 screens for the first two weeks of release. It also claims to have implemented steps to remove 60% of its “cash burn,” which I hope isn’t merely a whole bunch of layoffs or new rules requiring users to paint an original still life of their ticket stub. It also claims that it is generating non-subscription revenue equal to around $4-$6 per subscriber.

I’m not sure how co-financing Gotti creates more profit, but at this juncture, I’ll choose optimism. Let us hope that (and I quote) partnerships with third-party media inventory to increase scale and reach of marketing efforts driven by data; continued rollout and refinement of the Peak Pricing program; creating strategic marketing partnerships and promotions with studios, content owners and brands; and integration of Moviefone.com to support the media buys of brands and studios do their thing and keep the company in business. It really has changed the moviegoing habits of its subscribers, and now would be a terrible time for it to die.

MoviePass claims to be responsible for 6% of the domestic box office (I can’t imagine a movie like Three Identical Strangers tops $7 million without it), and you can argue its relative absence hurt Mission: Impossible – Fallout’s opening weekend. It wasn’t (k)night and day, but a 6% bump in the film’s $61.3 million debut would have meant a $65 million opening and a new record for Tom Cruise. Since folks now go to the movies only when there is a movie out that they specifically want to see, Fallout being blocked out won’t (yet) create a boost for the likes of Skyscraper or Equalizer 2.

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MoviePass To Raise Prices, Block Out New Releases To Try To Save Itself.