MoviePass Moves to Peak Pricing for Popular Movies Based on Demand

In yet another change to its subscription program, MoviePass (NASDAQ: HMNY) has launched surge pricing for popular movies during peak show times, reports Variety.

Subscription News: MoviePass Moves to Peak Pricing for Popular Movies Based on Demand

Source: MoviePass

In yet another change to its subscription program, MoviePass (NASDAQ: HMNY) has launched surge pricing for popular movies during peak show times, reports Variety. MoviePass says its ‘new dynamic pricing system’ will take into consideration the demand for certain movies at peak days and times and add a ‘small additional fee’ based on that demand. Movie ticket surcharges will range in price from $2 to $6 based on demand.

Subscription News: MoviePass Moves to Peak Pricing for Popular Movies Based on Demand

Source: MoviePass

Movies with surge pricing will be noted in the MoviePass app with a red lightning bolt. Movies that have not yet reached peak pricing but that are getting close will be noted with a grey lightning bolt. If the MoviePass subscriber chooses to see a movie during peak pricing, when they select their ticket in the app, they will get details of the cost difference and their card on file will be charged. According to MoviePass peak pricing FAQs, each subscriber can waive one peak fee per month through a feature called Peak Pass.

The goal of peak pricing is to give the company ‘additional flexibility’ when demand for certain movies is high. Moviegoers will know in advance which films are experiencing or approaching peak pricing and how much those movies will cost.

‘We are building peak pricing to be flexible and will be able to tweak it as needed based on the community’s response,’ MoviePass says. ‘By developing demand pricing, we are working to ensure we can continue offering our low monthly rate for a movie a day.’

MoviePass will gradually roll out peak pricing over the next several weeks, and it will apply to monthly subscribers and new monthly and annual subscribers. Current annual subscribers will not be subject to peak pricing until their membership comes up for renewal.

In the coming weeks, MoviePass will also roll out an option to watch RealD 3D and IMAX movies, but those tickets will also be more expensive than standard tickets. MoviePass will pass the price difference along to subscribers ‘in order to maintain a sustainable business model.’

‘This has been a highly requested feature that we are excited to offer our members,’ says MoviePass.

MoviePass is currently offering two plans, though their plans change often.

Subscription News: MoviePass Moves to Peak Pricing for Popular Movies Based on Demand

Source: MoviePass

In other MoviePass news, the company experienced an outage on Friday, July 6 that caused some users from checking into movies, including Marvel’s premier of Ant-Man reports The Verge. MoviePass advised users on Twitter that they could purchase tickets out of pocket and they would issue refunds.

Subscription News: MoviePass Moves to Peak Pricing for Popular Movies Based on Demand

Source: MoviePass

Subscription News: MoviePass Moves to Peak Pricing for Popular Movies Based on Demand

Source: MoviePass

Insider Take:

For subscribers, MoviePass seems like a great deal, even with surge pricing. The problem with the movie membership, however, is that the business model seems volatile and unsustainable. The company has repeatedly changed pricing and plans, so it is hard to know what to expect. As MoviePass has tried to develop a workable model, competitors continue to join the market, including Sinemia and now AMC Theatres. Financially, MoviePass does not seem to be strong. As of 7:50 p.m. EDT Friday, the stock of parent company Helios and Matheson Analytics Inc. was valued at $0.18 per share, its lowest point in a year. It is hard to envision how MoviePass can survive.

Subscription News: MoviePass Moves to Peak Pricing for Popular Movies Based on Demand

Source: Google

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