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MoviePass raises prices, limits movies after bleeding money

The fun is over, folks.

Well, it was nice while it lasted for moviegoers.

After almost a year of allowing subscribers to watch unlimited movies in the cinema for $9.95-a-month, MoviePass has had to make some changes.

That's because the model was unsustainable, in fact by all accounts it was burning cash at a tremendous rate.

That's why on Tuesday the fledgling company is increasing its monthly subscription to $14.95.

It will also be limiting what subscribers can see to blockbuster movies, which starts this week with Mission Impossible 6.

These efforts will reduce its cash burn by 60 percent, it says, while it also claims it will "drive attendance to smaller films and bolster the independent film community."

The company claims its service is helping bring about a renaissance in the movie industry, saying it's 3 million-plus members have been responsible for 6 percent of box office sales in the first half of 2018.

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But given it was a model in which MoviePass would pay theaters full ticket price for every movie attended by one of its $9.95-paying subscribers, it was never going to last.

The service now has competition from AMC movie theaters, which now offers a $19.95-a-month subscription that allows people to see up to 3 movies a week at its cinemas.

There are no restrictions on what movies you see, unlike the new MoviePass, and it also entitles subscribers to free popcorn refills.

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