MoviePass drops its price to $6.95 for new customers

MoviePass, the disruptive new subscription service that lets members watch one movie per day at participating theaters in the United States, is temporarily dropping its price for new members. The $10 per month plan is now down to $6.95, along with a one-time “processing fee” of $6.55.

With the average price of a movie ticket in the U.S. somewhere around $8.97, that’s a pretty amazing deal.

MoviePass has been in hot water lately. The company is 81 percent owned by Helios and Matheson Analytics Inc., an information technology company that specializes in “big data, artificial intelligence, business intelligence, social listening, and consumer-centric technology.” MoviePass CEO Mitch Lowe said the company’s technology routinely tracked users’ locations, but that the company would never sell that information. Lowe later apologized, stating that “we take customer privacy extremely seriously.”

Today’s announcement from MoviePass indicated that the price drop was due to “diversifying its revenue streams” through a series of marketing agreements with movie studios, movie distributors and movie theaters themselves. “This recent success in forming relationships with studios, exhibitors, and marketing partners has encouraged MoviePass to offer an even more attractive deal to consumers,” the company said.

Recently theater chain AMC made the move to exclude some of its theaters from the MoviePass program. It has previously called the company’s business model “unsustainable.”