MoviePass subscribers were just greeted with a special Fourth of July surprise from the company, but it's not good news. The additional cost depends on the movie, the time, and the popularity, so you can bet that Ant-Man and the Wasp will be subjected to Peak Pricing this weekend.
A red bolt icon will indicate if a movie's specific showtime is in peak pricing.
The change is just the latest in a series of tweaks MoviePass has added since dramatically lowering its prices past year and growing to more than three million members. MoviePass Peak Pricing will go into effect now for new subscribers, or next billing cycle for existing subscribers.
MoviePass and its parent company, Helios and Matheson Analytics, Inc. introduced peak pricing to offset the millions of dollars MoviePass is losing as it pays the difference for users' tickets. Now during peak times, MoviePass is adding a surcharge to the movie you see. The "small additional fee" will be determined based on the level of demand for the film and showtime.
In the coming weeks, MoviePass says it will begin offering a Peak Pass that will let users waive one Peak Pricing fee per month. The issue took a major hit after a May 8 filing with the Securities and Exchange Commission that revealed it had $15.5 million in available cash at the end of April, plus $27.9 million on deposit with merchants while monthly expenses totaled $21.7 million. The company's stock closed at 19 cents a share Thursday.
MoviePass is still clinging to life, but the movie ticket subscription service certainly isn't making things easy on themselves.
Earlier this week, the owners of MoviePass announced a plan to raise $1.2 billion in order to combat its unsustainable business model, which allows its three million subscribers to see one movie per day for $9.95 a month.
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