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They could never survive -- their customer demand came from selling $10 movie tickets for $9 -- funded entirely by investor burn. A sustainable business is one
by s_dev 5y ago
They could never survive -- their customer demand came from selling $10 movie tickets for $9 -- funded entirely by investor burn.
A sustainable business is one where you sell cinema tickets for $11 having bought them for $10 with the customer choosing you because you've added more than $1 in value for them.
It's a car racing down a hill. The acceleration looks exponential but it's just going to crash.
- Sohcahtoa82 5y agoI always assumed that MoviePass's endgame was to funnel so many of the ticket sales through them that they could strong-arm the theaters into lowering their ticket prices. They thought if they captured the movie ticket sales market, they could tell the theater "Start allowing us to pay only $2/ticket or we'll remove you from our app and you won't make ANY sales!" I could be totally talking out my ass, but that's what I always figured. I don't see how else they could be profitable.
- asciident 5y agoIt was more like them selling $300 of movie tickets (I'd watch one a day) for $10. Everyone only used them for the arbitrage.