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I thought their business model was like a gym: hope that most people won't use it. (Source: I have MoviePass and I'm seeing less than 1 movie per month because
by schizoidboy 9y ago
I thought their business model was like a gym: hope that most people won't use it. (Source: I have MoviePass and I'm seeing less than 1 movie per month because I'm too busy :-D)
Instead, this article claims it's:
1. Studio of movie $M pays MoviePass $X to market it to subscribers.
2. Subscribers see a movie they otherwise wouldn't pay for. MoviePass eats this cost ($Y).
3. Subscribers' word-of-mouth network effects bring in extra revenue $E that otherwise wouldn't have come in.
4. MoviePass stays alive if $E > $X > $Y.
- draw_down 9y agoIf people don’t use it then MoviePass won’t get any data for analytics.
- dublidu 9y agoMoviePass can’t use the gym model because most people actually like going to the movies, it’s not aspirational. MoviePass also has much higher cost per visit, since they have to pay full price to AMC.
- deleted 9y ago[deleted]