MoviePass to theaters, studios: Give $10 plan a chance

They say when it sounds too good to be true it probably is but in the case of new subscription plan, MoviePass CEO Mitch Lowe says this is the real deal.

Last month, MoviePass dropped its monthly subscription service fee to just 10 bucks. With MoviePass, you can see a major movie every single day at most theaters near you. MoviePass pays your ticket cost. But how does it make money?

"We're putting our money where our mouth is," Lowe says. "We are saying to the theaters and to the studios, give us six months to prove that we can reinvigorate, especially the millennials' interest in going back to the theater and then let's look at the data see how much incremental business and incremental profit we're driving and let's talk about how we share in that."

MoviePass can definitely be cost effective. The average cost of a movie ticket in New York City is about $13.

Although AMC released a statement saying it wanted to opt out and not participate in "this shaky and unsustainable program," MoviePass still works there and at over 90 percent of theaters across the country. It now has about 400,000 subscribers.