MoviePass explains how its new surge pricing will work
- On Thursday, MoviePass launched "peak pricing."
- Now subscribers who get tickets for movies or showtimes that are in high demand could be hit with a surge charge.
On Thursday, MoviePass sent out an email to its over 3 million subscribers announcing that "peak pricing" had gone into effect.
As Business Insider reported in June, the movie ticket subscription company will begin a surcharge for movies and showtimes that are in high demand.
This is how MoviePass explained what it will do with its peak pricing:
Before ordering tickets, you will be notified on your app that the movie or showtime is in high demand and you may be asked to pay a "small additional fee," it said in the email.
It's still not clear how much the fee will be, but MoviePass CEO Mitch Lowe told Business Insider it will start at $2.
A red bolt icon will indicate if a movie's specific showtime is in peak pricing. A grey bolt icon will indicate that the showtime is not at peak pricing level yet, but is nearing it.
MoviePass will also launch a "Peak Pass" in the coming weeks, according to the email, with which subscribers can waive one peak fee per month.
The peak pricing will be rolling out over the next several weeks, according to the email.
Lowe told Business Insider the reason for the peak pricing was to "make sure that we can continue to offer a valuable service and support the whole enterprise."
Subscribers who signed up for the MoviePass annual plan will not be subject to peak pricing.
By the end of the summer, expect announcements on a bring-a-friend option to the app - which allows you to pay for a non-MoviePass subscriber with your app - as well as a premium price option where you can use the app to get tickets to non-2D movies, like IMAX or Real 3D.
Have a tip about MoviePass or anything else? Email jguerrasio@businessinsider.com.