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MoviePass subscribers may have to spend a little more money on their next trip to the theater.
The service, which allows customers to watch a movie a day for $ 10 a month, began deploying surge prizes on Thursday.
MoviePass told customers that its advanced pricing model will trigger whenever there is a lot of demand for a movie or showtime. For example, a subscriber who wishes to see a popular evening showing the latest movie "Avengers" could be notified by the MoviePass app that he will have to pay a few extra dollars to book a ticket.
Movie buffs will also be notified when a particular showtime does not have any additional fees, but that it is more and more requested and could have one soon, according to an email sent to customers.
The popular movie service started telling customers last month that surge prices were coming in. It's the latest tweak of a business model that Wall Street has scrutinized as too good to be true.
Related: Is the end close to MoviePass?
MoviePass pays the rooms for the tickets its customers use. Because its monthly price is so low, the business loses money when its customers use a pass.
parent company Helios and Matheson ( HMNY ) is now short of money. The firm recently revealed in government documents that it blew through MoviePass' $ 40 million operating in May. By the end of this month, the company had only $ 18.5 million in cash, plus $ 30.3 million in accounts receivable.
Earlier this week, Helios and Matheson told government regulators that they wanted to sell $ 1.2 billion worth of stocks and debt to raise money. The company's stock closed at 19 cents a share on Thursday.
Related: MoviePass is running out of money and needs to amass $ 1.2 billion
MoviePass recently passed 3 million subscribers, and tries to attract more as part of his plan to stay afloat. Executives want to reach 5 million members by the end of the year, a figure they believe should help make the company profitable.
In a statement Thursday, MoviePass said that it is still in a trial period with rising prices, which will be rolled out to all subscribers over the next few weeks . For starters, he said members can expect fees ranging from $ 2 to $ 6. Members who participate in an annual or quarterly plan will not have to pay any additional fees until they have renewed their subscription.
In an article on his website, MoviePass painted the new model as a model that would allow him to "continue to offer our low monthly rate for a movie a day".
The company also took a shot at competitors like AMC Theaters, which recently revealed a $ 20 movie ticket service plan per month. Keeping the $ 10 a month plan as the base offer, MoviePass said its customers "always get the best deal possible."
The company added that it will soon allow all its users to waive a peak fee once a month.
CNNMoney (New York) First published July 5, 2018: 4:44 PM ET
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