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MoviePass peak pricing signals financial pressure as losses mount

$2 to $6

MoviePass is now charging whatever it wants for movie tickets through peak pricing. That might be a bad sign for the company’s long-term health.

Published   |  Photo by AP Photo/Darron Cummings
ap_18032576384605-e1523546599938
$2 to $6

Reactions have been mixed to negative as MoviePass looks to soften the financial toll it takes on supporting its $10-per-month one-movie-per-day business model.

ap_18032576384605-e1523546599938
$2 to $6

And the losses are piling up: MoviePass parent company Helios and Matheson reported spending $40 million more in cash than it earned in May.

ap_18032576384605-e1523546599938
$2 to $6

That gap is expected to widen to $45 million for June. In the meantime, Helios and Matheson is looking to raise another $1.2 billion by selling stock and debt.

ap_18032576384605-e1523546599938
$2 to $6

MoviePass says its new peak pricing could range from a $2 to $6 surcharge for movies “high in demand“—though it’s still in a testing period.

ap_18032576384605-e1523546599938
$2 to $6

If past startups are a guide, hidden fees are almost always a bad sign. But even so, it’s still cheaper than paying full price for a movie theater ticket in most places in the US.

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