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Are theaters even breaking even on screenings? From what I understood the economics are based on the value added services AKA the food crap as well as merch for
by dogma1138 7y ago
Are theaters even breaking even on screenings? From what I understood the economics are based on the value added services AKA the food crap as well as merch for the larger box office hits.
I think the idea behind movie pass was basically the same economics as behind a gym as long as most people don’t take the full advantage of their membership and are tied to a contract they’ll make money if everyone does it’s a different ball game.
The problem with movie pass is that their model is too easy to replicate by the theater chains and cut them off, i really don’t understand why they got VC funding even if they could scale to the point of making a profit this model simply can’t be easily protected against competitors especially when the competitors are part of your service supply chain.
- ehsankia 7y agoI think at 10$, it was way to cheap to even survive on the gym-economics. I think the plan was to build a huge userbase, and then use that as leverage to: 1. get better prices from theaters to send users there 2. make deals with studios to send users to their movie 3. make deals with nearby stores to send users there it backfired when all the theaters called the bluff and just started their own membership program, and held out until Moviepass bled out all their VC money.
- rurban 7y agoTheatres are not breaking even, that's why they were all bought by the studios which control now everything: production, marketing, distribution. A typical cartel. And they use their power to distribute lower quality and conquer foreign markets to disrupt that market also. A theatre is only a small part in that chain.
- megaremote 7y agoIt is complicated. The share US theaters pay studios changes each week. So studios want films with up front popularity, studios want sleeper hits.