The parent company of MoviePass has been struggling for a while on Wall Street’s concerns, even taking the stock down to penny stock levels.
The company lost nearly 100% of its value in just a week, posting one of its worst weeks on records since going public in 1997.
The stock had dropped to a market value of around $400,000 this month after reports revealed that some customers couldn’t use the popular movie subscription service.
The stock then fell even more after MoviePass announced higher pricing for its standard plan, allowing users to see one movie a day but with certain limitations.
It was also revealed that MoviePass’s first-run movies playing in more than 1,000 theaters won’t be available to subscribers for the first two weeks.
Helios and Matheson shed 54 percent on Wednesday August 1st and then 56 percent on Thursday August 2nd. Then on Friday, shares fell another 30%.
It was at the end of last month that the company also said it had taken out an emergency loan to cover its losses and keep MoviePass up and running. The company released a statement Thursday titled “We’re Still Standing.”
On Monday the company again changed the terms of its movie subscription service and said that customers will be limited to three movies per month for one fee. Under the service’s new plan, moviegoers can see up to three movies each month for a $9.95 monthly fee.
“We believe this new plan is a way for us to move forward with stability and continue to revitalize an entrenched industry and return moviegoing to everyone’s financial reach,” MoviePass CEO Mitch Lowe said in a statement.
“We believe this new business model will immediately reduce our burn so we can refocus our efforts where they belong: making a permanent and positive change in this industry by creating an amazing theater-going experience and building a company that continues to benefit our nationwide community,” said Ted Farnsworth, the Chairman and CEO of Helios and Matheson.
MoviePass Films’ cofounders Ted Farnsworth, Mitch Lowe, Randall Emmett and George Furla, also announced this week that Bruce Willis will star in MoviePass Films’ “10 Minutes Gone.”
Willis said he was “excited to be working with producers Randall Emmett and George Furla again with their new venture MoviePass Films.”