Investors in MoviePass’s parent company are guzzling Dramamine Tuesday morning, as shares have been on a steep roller coaster, jumping more than 200% in early trading Tuesday, then quickly losing all of those gains—and more.
Shares of Helios and Matheson Analytics were down 30% as of 11:35 a.m. ET, after a steep climb in the first 20 minutes of trading to as high as $2. The shares closed the day at 50 cents, down 38%. The jump came after MoviePass announced plans to increase the price of its standard plan from $9.95 per month to $14.95 per month.
Consumers are going to get less for that extra money, though. The service said it would begin limiting new movies in 1,000 theaters (at least) for the first two weeks of the film’s run. That’s angering customers, who were already upset after finding themselves locked out of the chance to use MoviePass to see Mission: Impossible – Fallout last weekend. The service was down again on Monday.
These changes come just weeks after the company added surcharges for screenings during peak periods.
“These changes are meant to protect the longevity of our company and prevent abuse of the service. While no one likes change, these are essential steps to continue providing the most attractive subscription service in the industry. Our community has shown an immense amount of enthusiasm over the past year, and we trust that they will continue to share our vision to reinvigorate the movie industry,” said Mitch Lowe, MoviePass CEO.
That didn’t do much to assuage outrage on social media, though.
HOW DO I GET MY MONEY BACK FROM @MoviePass I AM PAID THROUGH NOVEMBER FOR THIS NONSENSE?!? https://t.co/E9TB3tMR7U
— Kramer!: @chriskramerpr.bsky.social (@chriskramerpr) July 30, 2018
moviepass HQ curently pic.twitter.com/QIQ0NqaZtt
— Seinfeld Current Day (@Seinfeld2000) July 30, 2018
https://twitter.com/MariaGaddis/status/1024287696120885248
https://twitter.com/marklisanti/status/1024070920015495169
#MoviePass: “Mr. Stark, I don’t feel so good…” pic.twitter.com/YhaYkSWseL
— Andy Kenareki (@AndyKenareki) July 30, 2018
As of Tuesday, MoviePass was still operational for card holders.