MoviePass customers were surprised to receive emails from the company today informing them that all annual plans were going to be canceled by the end of the month. This is the latest in a series of changes to the company's unlimited movie plans as MoviePass continues to struggle to stay afloat.
As previously reported by Inquisitr, customers were already balking at recent MoviePass changes a few weeks ago, which limited users to three movies per month, a far cry from the company's original $9.95 movie-a-day "unlimited" plan. MoviePass lost $85 million between May and June of this year, resulting in CEO Mitch Lowe trying a number of options to stay profitable.
The Verge reports that members with annual subscriptions received the following terms in an email announcing the cancellation of annual plans, offering them the same benefits as monthly subscribers.
Gizmodo reports that MoviePass is being sued by investors for fraud, following a massive loss of $219 million in the second quarter of this year. The new changes to the annual plans will most likely prompt further legal challenges. Annual subscribers have until August 31 to decide if they want to request a refund or accept the monthly membership plans.
According to CNET, MoviePass has always had a history of drastic changes to its membership plans, but the introduction of the $10 movie-a-day unlimited plan in 2017 seemed "too good to be true." In spring 2018, AMC Theatres left MoviePass in response to the unlimited deal. MoviePass then altered its unlimited plan to a $9.95 monthly subscription that included four movies a month and a three-month trial of iHeartRadio All Access. The company then limited subscribers from seeing the same movie more than once starting in April. In May, subscribers were required to submit photos of their ticket stubs. The most dramatic changes happened in June, when MoviePass introduced surge pricing for popular movies, and then blocked out weekend showtimes for popular movies in July.