MoviePass just killed its signature unlimited movie plan

Citing community response, a desire to create a "sustainable business model", and combatting a small number of users viewing "a disproportionately large number of movies" as the reasons for its decision, MoviePass - which now allows customers to see one theatrical release per day for a monthly price - confirmed Monday it will not increase its recurring fee to $14.95 per month.

Movie theater subscription service MoviePass will not be raising prices, as it had announced last week, but will instead be capping the number of times that subscribers can visit movie theaters. As mentioned, there will be a new limit of three movies per month; however, MoviePass customers who want to see more films than that will receive a discount of $2 to $5 for every movie afterward. The change to three movies per month takes effect August 15.

While these changes brought in a rush of new customers, the cost to keep them proved too much for the company to sustain. As a result, the company expects the new subscription model won't affect 85 percent of its customers. Additionally, the service is also doing away with surge pricing for big movies on opening weekends.

Two law firms announced on Monday that they have begun seeking defendants for class action litigation against MoviePass parent company Helios and Matheson Analytics, claiming that the company over-inflated MoviePass's profitability when presenting information to investors, who then lost money.

The embattled MoviePass is taking out all the stops to survive. The company has since paid back the loan, reported WSJ.

The outage is just the latest struggle for the company. Lowe said in an interview with the Wall Street Journal that the move will reduce the company's cash burn rate by more than 60 percent and make it "more manageable" to become profitable.

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