MoviePass is in the business of …
Last year August, The company lowered the price of its movie theatre flat rate to $9.95. This was intended to make Moviepass they way you could watch movies every day for the price of a single ticket.
This price change leads to a drastic increase in the usage of the app as much as 20,000 back at the introduction to 3 million in June 2018. This thus leads to higher costs to operate the service, leading having to shut down the service last week.
The company effectively ran out of money and had to borrow $5 million in order to get the services back up and running again. MoviePass’s business model leads to operation balance act. The company in July introduced Peak Pricing, a way for users to pay additional fees for popular films only to now exclude some major releases from its model altogether.
These efforts help to keep MoviePass operational but its a constant reminder that its services are “just too good to be true”.
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