Despite drastic changes, MoviePass lost money on me for the month after only 1 day — and it shows why the service is in a death spiral

Business Insider / Avery Hartmans

• MoviePass rolled out drastic changes this week to restrict usage of the app and control its cash burn.
• It still lost money on me for the month after only one day.
• If MoviePass cannot strike better deals with theaters, it will die.

This past week, MoviePass began to roll out drastic changes to its service after cash-flow problems caused the app to stop working for many users.

MoviePass will raise its price, ban major movies (for at least a few weeks after their openings), and remove certain showtimes, in addition to charging surge pricing, banning repeat viewings of movies, and other previous measures. These updates are meant to slow the company's cash burn, which has soared to an estimated $45 million per month.See the rest of the story at Business Insider

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See Also:

• The strange story of how MoviePass' owner was created by an Indian company accused of massive fraud
• 10 hidden gem movies currently in theaters you should see, especially if you have MoviePass
• The MoviePass outage was caused by the company temporarily running out of money, and it borrowed $5 million in cash to turn the service back on

SEE ALSO: The strange story of how MoviePass' owner was created by an Indian company accused of massive fraud