MoviePass is currently in a free fall . Its parent company, Helios and Matheson Analytics, just hit a depressing stock low of 71 cents a share as money woes and negative headlines continue to pummel it. Last week, MoviePass had to borrow an emergency $5 million to keep the service available to subscribers, and now it’s beginning to make certain popular films unavailable to its user base.

This morning, MoviePass announced it has a new strategy going forward, a “plan for profitability” that revolves around significantly cutting costs. Among other things, the company says it plans to slash its monthly burn by 60%. The question is: Will it be enough?

If MoviePass is able to significantly cut its costs, that that may give it some runway to figure out a profitable model that can scale. Included in this new plan is a minimum subscription price of $14.95/month (compared to the current $9.95), as well as a limit on “first run movies” that are available to its subscribers.

While these changes are aimed at stemming losses, they don’t address the larger question of whether MoviePass’s business model is inherently flawed. According to Wedbush analyst Michael Pachter, the company is very likely doomed for this reason. The economics simply don’t add up, he says, because MoviePass hemorrhages money on every customer it has.

“The only ways for the company to become viable,” Pachter writes via email, are “raise prices or find another revenue source or … cut expenses.” Given that MoviePass doesn’t control the cost of tickets (it pays full price for every ticket its subscribers purchase), it’s very hard–if not impossible–for the company to significantly cut expenses.

And if MoviePass raises its price–which it’s now nodding toward–“they wouldn’t have as many members.” So its problems are twofold: Will the new $14.95 fee will scare away subscribers, and will the new baseline price actually bring in enough money to keep the service afloat? Pachter doesn’t mince words: “It’s a bad business model, since they have no control over the product they are offering.”

Abandon All Hope? Maybe Not

Eddie Yoon, the founder of EddieWouldGrow, a think tank and advisory firm on growth strategy, who’s written about MoviePass’s business strategy, thinks there may be some way to keep MoviePass afloat. A subscription model that makes money from other cross-brand opportunities is a good longterm strategy, he says. In the case of MoviePass, “It’s been poorly executed.”