Following a tumultuous week, MoviePass has issued a letter to its users apologizing for recent interruptions in service and laying out its plans going forward. The mea culpa comes just as the company has paid back an emergency loan, one of the first positive signs for the company since it ran into its current troubles.
The letter from CEO Mitch Lowe personally apologizes for both the recent unreliability of the service and its lack of communication around the problems. It then explains the rationale behind the recently announced changes, like reducing availability for big new releases and increasing its price. It cautions that showtimes will vary while the company adjusts its model, so users should check the app before making their movie plans. It also says the company is working on making the app more clear about which new movies are eligible and when.
"We want to be as transparent as we can with these changes and any future changes," the letter reads. "We are committed to giving you the best experience. We count on your support and loyalty while we implement these necessary steps for the company you’ve grown to love."
Meanwhile, Variety reports that the company showed in public filings that it has paid back a $6.2 million emergency loan. The creditor could have demanded to be paid back half that amount, $3.1 million, as of today. The upcoming price change from $10 to $15 per month is expected to reduce its cash burn rate by 60%, which may make it more viable long-term. Despite that, stock in parent company Helious & Matheson continues to tumble, having fallen down to approximately 25 cents per share as of the time of writing.
MoviePass's competitive business model has inspired the competition to offer competitive services, or sometimes, to simply take a swipe at the service to promote its own. The company has definitely shown an interest exists for a theater subscription model, so we're bound to see more offerings with similar incentives.
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