"Additionally, the new plan addresses past misuses which imposed undue costs on the system, including ticket scalping, unauthorized card usage and other activities, which in the past necessitated the use of certain remedial measures that have sometimes been inconvenient for our subscribers". Now, another rule has been added: Customers can only see three movies per month, according to the Wall Street Journal.
Under the revised policy, set to begin on August 15, the $9.95 a month fee remains unchanged but MoviePass will drop its surge pricing and its recent move to block sales of tickets to recently opened blockbuster movies.
As per MoviePass, only 15% of its three million users watch four or more movies in a month, and thus this move won't affect the bulk of its users.
And requiring subscribers to send photos of their movie tickets to justify MoviePass paying for them.
Now, many of those changes are being rolled back, though MoviePass isn't returning to its "good old days". The beleaguered movie theater subscription company is also canceling two other recent changes - "peak pricing" surcharges for popular movies and a ticket verification process - that were meant to stop the company from bleeding money.
"While most of our loyal subscribers shared the passion for this new accessible movie experience and experimented fairly, the fact is that a small number have used our business model to a point where it was compromising the business' long-term stability", Lowe said.
Launched in 2011, MoviePass didn't catch major traction until it lowered its monthly fee to $9.95 in 2017.
Though the company gained more customers, it struggled to keep up financially, as it has to pay the full price of a ticket at most theaters. Its parent company recently had to take out a $5 million emergency loan to pay its payment processors after missed payments resulted in service outages.
"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. HMNY's stock has lost virtually all of its value in recent months and is now a so-called "penny stock".