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Moviepass is cratering. Why would you say they are successful? The are net negative on a per customer basis. They lost $150M last quarter. Their only positiv
by FPGAhacker 8y ago
Moviepass is cratering. Why would you say they are successful? The are net negative on a per customer basis. They lost $150M last quarter.
Their only positive income is investment rounds. Negative return on investment.
It’s like subsidizing your company with credit cards. And having a business model of “apply for new credit cards”
- imh 8y agoFair enough. The comment I was replying to was trying to make a point that consumers don't like a la cart models, so I think the consumer side of moviepass was the pertinent feature (they're wildly successful in terms of people loving it). It may suck for moviepass's finances, but as a consumer it's great and the $0 incremental cost has changed how I think about going to the movies. You could argue that the bulk of that happiness is that I'm just happy I'm paying less, which is hard to introspect. In that regard, maybe a profitable biz like netflix is a better example. But then I realize that artists are complaining about getting screwed by spotify, studios are jacking up prices on netflix, and even services like classpass are changing. I wonder how many (if any?) of these subscription a la cart businesses have actually reached equilibrium.
- robryan 8y agoYou have to question a business model which only turns a profit when customers are paying for something they don't need. Unless they can negotiate favourable deals their only path to profitability is delivering no value to a high percentage of subscribers.
- matmann2001 8y agoWhy do VC's invest in startups with large userbases but no revenue streams?