2 ms·
They looked at people's movie habits and wrongly applied that to an "all you can eat model". I'd guess the average person sees 6 movies a year. This is quite
by adrr 8y ago
They looked at people's movie habits and wrongly applied that to an "all you can eat model". I'd guess the average person sees 6 movies a year.
This is quite common. I worked at a telecom that sold 0.99 unlimited 1-day calling cards and we predicted would spend less than 1 hour on the phone. People spent an average of 2+ hours on calls which made the product lose money. And some people spent all day on the product.
- indecisive_user 8y agoEarly adopters to moviepass were mostly movie fanatics that went to the theaters more than average. They could only ever make money if they convinced the people that hardly every go to the theaters to sign up en masse, but even at $10/month they couldn't get enough of that demographic before their cash ran out. It's not an entirely dissimilar premise as Netflix. If all of Netflix's users started streaming as much as the top quartile do, they'd probably be in a bind as well with the huge increases in bandwidth and server costs.
- Operyl 8y agoThat's not entirely true, since the majority of bandwidth is actually offloaded by ISPs with the Netflix Open Connect program. https://openconnect.netflix.com/en/ https://openconnect.netflix.com/en/. Sure, there'd be extra costs in distributing some of the more unused catalog to the machines, but realistically most people are going to be watching newer content en masse and not a large spread.