MoviePass will soon begin limiting customers to just three movies a month, a major change from its current allowance of one a day, in a desperate attempt to stop the company from bleeding cash. Chief Executive Mitch Lowe said the new policy—which will come into force on Aug. 15—will reduce the company’s cash-burn rate by more than 60 percent and make its attempted transition to profitability “more manageable,” according to The Wall Street Journal. The company’s monthly cash deficit currently stands at $45 million, according to filings from parent company Helios & Matheson Analytics. MoviePass subscribers pay $9.95 a month to see one movie a day but, in practice, 85 percent of customers see three or fewer a month. “They will not be affected at all by this program, and even better, they’ll stop hearing MoviePass is going out of business,” said Lowe. MoviePass, which says it has more than 3 million subscribers, briefly stopped working in most theaters over the past few weeks and its parent company had to borrow money at a high interest rate to stay afloat.
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