MoviePass Slashes the Price 20% – With One Caveat
MoviePass has been all the rage lately, going from around 20,000 users to over 1.5 million in the last 5 months. The program allows you to see one movie every 24 hours for a flat monthly fee. It is a pretty amazing program that I wrote a review on it a few months ago.
I signed up for MoviePass at $9.95 billed every month. They have recently reduced the price by 20%, to $7.95 a month. There is one caveat with this new deal though.
UPDATE: It looks like they charge a $9.95 processing fee bringing the total to $105.35 or $8.78 a month. Only a 12% discount instead of 20%
New Offer Details
It looks like this is a “limited time” offer. I put that in quotations because they don’t specify how long it will last. I would guess they have a target for number of subscribers they are shooting for and they will pull it once they hit that number.
The new deal is $7.95 a month, 20% cheaper, but the caveat is that you are billed for the full year upfront ($95.40). This may turn some people off, not being able to test the waters and cancel after a month etc.
This offer is a little bit more expensive than the Costco deal ($89.99) that I talked about in my review. But that seems to be sold out online for the time being, although there may still be some available in stores. This is still an improvement for non Costco members though.
Issues with this Offer
There are a few potential issues with this offer:
- As previously mentioned you can not test it out and then cancel
- You may be able to cancel and get a prorated refund but MoviePass’ customer service has not been very good so I wouldn’t count on it.
- MoviePass has been shutting down “abusers” and it is unclear if you would get refunded if shut down.
- If MoviePass goes out of business at any point you lose out on the money you gave them in advance.
- They have removed a few theaters from the program already. More may be removed in the future, including your favorite theater. This is most likely only in big time markets like NYC and LA.
On the liquidity point it sounds like MoviePass has a deep pocketed investor so I wouldn’t worry about it in the short term. They are probably getting enough cash flow from these yearly sign ups to float it for a while anyways. Their goal is to get subscribers into month 4 and 5 when they become more profitable, only going to one or two movies per month.
I have enjoyed my MoviePass membership immensely, going to one movie a week for $10 a month. But others have had issues with MoviePass and their customer service department. That is something to consider when you are shelling out $100 for a yearly service.
Knowing what I know now I would probably prefer this deal over the $9.99 per month plan but I haven’t had any issues thus far. I may be singing a different tune if I had run into some issues and was unable to get it resolved.
What do you think? Is this a better offer or do you like the monthly billing better?