3 ms·

Their goal was never to be profitable on paper, but acquire a ton of users and use them as bargaining powers for big theaters. It never worked though, as AMC an

Their goal was never to be profitable on paper, but acquire a ton of users and use them as bargaining powers for big theaters. It never worked though, as AMC and the others understood pretty well that the best way to deal with them is to ignore them and let them die which would eventually happen. It is a shame, because there is a real issue in the US with movie theaters that are mostly empty due to Netflix and other "At Home" offerings. The marginal cost of someone going to a movie is zero, so there is definitely some business there.

valuearb 8y ago
That's not a problem, or at least it's not a problem outsiders can solve, it's a problem only the Theatre chains can solve. If MoviePass had negotiated great discounts and co-marketing agreements with the chains up front to re-sell their unused seating inventory, it might have made sense. As they did it was one of the dumbest business ideas ever, and gives credence to the rumor that early backers were trying to launder money from a previous fraud.
jonknee 8y ago
> It is a shame, because there is a real issue in the US with movie theaters that are mostly empty due to Netflix and other "At Home" offerings Theaters are just about as busy as they have ever been and are at revenue highs. It's nothing like what happened to CD sales after digital took over.
- ironjunkie 8y ago
  It might be. My personal experience though is that whenever I go (usually peak time on weekdays), it is 98% empty (only the typical couple central seat being used). The movie is going to be projected with or without more people. Even selling the seat for 0.5$ generate some money for the theater, and probably even more given what the average user spends at the concessions. I'm oversimplifying since the Producers of the movie request X$ per ticket, but you get the idea. MoviePass managed this badly, but there is definitely an opportunity here.

valuearb 8y ago

That's not a problem, or at least it's not a problem outsiders can solve, it's a problem only the Theatre chains can solve. If MoviePass had negotiated great discounts and co-marketing agreements with the chains up front to re-sell their unused seating inventory, it might have made sense. As they did it was one of the dumbest business ideas ever, and gives credence to the rumor that early backers were trying to launder money from a previous fraud.

jonknee 8y ago

> It is a shame, because there is a real issue in the US with movie theaters that are mostly empty due to Netflix and other "At Home" offerings Theaters are just about as busy as they have ever been and are at revenue highs. It's nothing like what happened to CD sales after digital took over.

ironjunkie 8y ago
It might be. My personal experience though is that whenever I go (usually peak time on weekdays), it is 98% empty (only the typical couple central seat being used). The movie is going to be projected with or without more people. Even selling the seat for 0.5$ generate some money for the theater, and probably even more given what the average user spends at the concessions. I'm oversimplifying since the Producers of the movie request X$ per ticket, but you get the idea. MoviePass managed this badly, but there is definitely an opportunity here.