(CelebrityAccess) — MoviePass announced another major revision of its business model on Monday when they drastically cut back the number of movies its users could see in a month to just three.
The subscription service had previously allowed its users to see one movie a day with certain restrictions but has been battling with massive losses and skepticism from investors.
The change is set to go into effect on Aug. 15, the company said.
Moviepass announced last week that it was raising its prices from $9.95 per month to $14.95 per month, and introduced a controversial “surge pricing” model which would see the service tack on extra fees for certain, popular movies.
Under the latest revision of their pricing plan, the surge pricing and the monthly subscription price hike have been dropped after proving unpopular with customers.
“Any industry-wide disruption like MoviePass requires a tremendous amount of testing, pivoting, and learning,” CEO Mitch Lowe said in a statement.
Ted Farnsworth, chairman and CEO of MoviePass parent company Helios and Matheson added that while most Moviepass customers do not see more than three movies a month on average, that a small number of heavy users had been “stressing the system.”
“We believe this new business model will immediately reduce our burn so we can refocus our efforts where they belong,” Farnsworth said in a statement.