The brash young U.S. subscription service MoviePass, which has threatened to disrupt the business of moviegoing with its plan that allows moviegoers to watch up to 30 movies per month (one movie per day) for a monthly $9.99 fee, has unveiled “Peak Pricing,” an additional surcharge that will go into effect when MoviePass determines there is a high demand for a particular movie showtime, a move that will almost certainly further agitate MoviePass’ estimated three million subscribers.

The red flash icon will indicate Peak Pricing, with the surcharge amount detailed below on the MoviePass app.

In an e-mail to subscribers sent minutes ago, MoviePass detailed the process, whereby a red flash icon will appear for Peak Pricing showtimes within its phone app, with the surcharge amount listed below.  Additionally, a grey flash icon will indicate that a showtime does not YET have an added fee, but is growing in demand and could enter Peak Pricing soon.

MoviePass says the Peak Pricing surcharge will vary based on the showtime and movie title.

Filings with the Securities and Exchange reveal that Helios and Matheson, the parent company of MoviePass, has burned through an average of $21.7 million each month since it went public last August. In May, MoviePass went through $40 million, prompting widespread speculation that the “too good to be true” business venture may soon run out of money if it can’t soon come up with a viable plan to raise more funding.

America’s largest movie chain, AMC Theaters, has announced its own subscription service, Stubs-A-Lot.

In late June, AMC Theaters, the largest cinema chain in the U.S. and a vocal MoviePass critic, announced its own subscription-based moviegoing service, Stubs-A-Lot, which allows members to see up to three movies a week for $19.95 per month. What sets AMC Theaters apart from MoviePass, is the inclusion of 3D, 4D, Dolby and IMAX viewings. MoviePass currently is good only for standard 2D movies.

Current MoviePass CEO Mitch Lowe is a co-founder of Netflix.

While MoviePass trumpets its service as making up 3-7% of American movie ticket sales, constantly changing terms and conditions, such as this latest Peak Pricing surcharge, is likely to only further frustrate subscribers who have witnessed a recent spate of MoviePass pricing plan flip flops and a shocking lack of customer support.

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  1. November 22, 2018

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