MoviePass cuts plan to three movies per month

MoviePass is limiting users to three movies per month as of August 15, as they are short on cash and beset by investors.

Users pay $9.95 a month to see what will now be three movies a month. Beyond that, however, according to Engadget, you can get $5 movie tickets after your three movies are finished.

MoviePass says only around 15 percent of users see four or more films a month, so this policy won't affect most users.

According to Market Watch, MoviePass's CEO, Mitch Lowe, believes this cut will reduce the company's cash burn rate, as well as better manage its transition to making a profit.

Over the last few weeks, MoviePass briefly stopped working in theaters. Therefore, MoviePass' parent company, Helios and Matheson Analytics Inc. needed to borrow money at high interest to keep things running.