MoviePass to hike prices, but not likely to a profitable level

— MoviePass, the discount service for movie tickets, is raising prices by 50 percent and barring viewings of most major releases during the first two weeks.

The new $15-a-month rate for up to one movie each day still won’t make MoviePass profitable. Because it typically pays theaters the full cost of tickets — which can be $15 or more in big cities — a movie or two can put the service in the red. The old monthly rate was $10.

MoviePass has shown that many moviegoers will make time to hit theaters when movies are affordable, despite more convenient options such as Netflix and video on demand. At some theaters, it is common to see long lines with people holding red MoviePass cards, which subscribers can use to charge a movie to the service.

MoviePass has grown to 3 million subscribers, from about 20,000, since it slashed monthly rates nearly a year ago to $10, from as high as $50. The company claims that its subscribers accounted for 6 percent of U.S. box office revenue in the first half of the year.

But its financial sustainability has come into question. Last week, its parent company took out a $5 million emergency loan to pay its payment processors after missed payments resulted in service outages.

MoviePass said the rate hike will go into effect within the next 30 days. Yesterday’s announcement comes just days after the company, in a note to subscribers, justified surcharges for popular movies and show times as a way to keep rates low.