The company raised $5 million last week (and promised to pay the lender back $6 million) in an extremely short term loan that can be called in at anytime by the hedge fund that lend MoviePass the cash.
As a part of this new plan, MoviePass subscribers will also get a $5 discount on any additional movie ticket that they purchase over and above the monthly three free tickets. "We have heard - and we have listened to - our MoviePass Community and we will not be raising prices to $14.95 a month", the service said in a statement on Monday.
"It has become clear that a small number - only 15 percent - of the subscriber base has been stressing the system".
The movie-per-day option is officially being removed as the company struggles to stay in business. Instead, their full subscription will entitle them to no more than three trips past the velvet rope - the same number of theater visits previously offered under the company's bargain $7.95 per-month plan.
For example, if a MoviePass user wants to see the "Aquaman" movie this winter they should be able to see it at MoviePass-compliant theaters on opening weekend, with none of the issues that plagued the service during the opening of the latest "Mission: Impossible" film.
MoviePass, which is owned by technology services company Helios & Matheson Analytics, said it will keep its monthly subscription fee at $9.95 and will suspend peak pricing.
As part of its new model, MoviePass is doing away with a bunch of other changes, too.
The new caps take effect August 15, though those with annual subscriptions won't be affected until their renewal date. Users would have to wait a few weeks before using their subscription to see blockbuster films. Also eliminated are peak pricing and ticket verification.
The stock gained 2 cents on Monday after the new plan was announced.