MoviePass peak pricing launches

MoviePass peak pricing launches

That day has come, as you will now see a lightning icon above showtimes that will include a Peak Pricing fee.

You may have to pay extra to see that new talked-about movie.

It seems MoviePass' value proposition was a bit too good to be true after all, despite the confidence CEO Mitch Lowe expressed in the company's business model in the past. Users have the option of selecting a different showtime without the Peak Pricing, or committing to the Peak Pricing screening and having their credit card charged the additional fee - which is dependent on the movie's demand and popularity.

Before ordering tickets, you will be notified on your app that the movie or showtime is in high demand and you may be asked to pay a "small additional fee", it said in the email.

Shares of MoviePass parent Helios & Matheson Analytics declined almost 6 percent on Thursday, furthering a drop that had the stock slumping by double digits last week amid concerns the movie customers' business model is not sustainable.

However, the company insists that customers won't be hit with any nasty surprises. The firm recently revealed in government filings that it blew through $40 million operating MoviePass in May.

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Earlier this week, Helios and Matheson told government regulators that it wants to sell $1.2 billion in stock and debt securities as a way to raise money.

MoviePass just announced that it's rolling out its peak pricing starting today.

MoviePass is still clinging to life, but the movie ticket subscription service certainly isn't making things easy on themselves.

Stock of Helios and Matheson was off 2 cents to 19 cents a share on Thursday in late-session trading.

MoviePass has more than 3 million subscribers and allows customers the chance to see a movie a day for a monthly fee of $9.99. They'll also offer a Peak Pass, which will let customers "waive one peak fee per month".

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