MoviePass will also suspend peak pricing and ticket verification for users on the new plan, and ticket restrictions on new movies - such as the one introduced with Mission Impossible: Fallout last week - are being revoked as well.
MoviePass, the struggling movie subscription service, will limit customers to three movies 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 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.
MoviePass, a discount service for movie tickets at theaters, is walking back a planned 50 percent price increase following a subscriber backlash.
MoviePass Chief Executive Mitch Lowe told The Wall Street Journal that the change will take effect beginning August 15.
"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", he said in a statement.
Helios and Matheson stock has plunged as investors have grown increasingly doubtful about the viability of MoviePass.
"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.
For the last many weeks, MoviePass customers have been annoyed by the many changes to the service, to say the least. The stock rose 3 cents to 10 cents per share in early trading Monday, soaring over 45 percent on the new plan news. 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.