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This is exactly what happened with moviepass- their success was their downfall as even VC money ain't endless.
by effingwewt 5y ago
This is exactly what happened with moviepass- their success was their downfall as even VC money ain't endless.
- paulcole 5y agoEven though the VC bill will eventually come due, the moviepass analogy doesn’t quite hold up. Moviepass was in a situation where they were selling discount tickets and then paying the movie theaters for (essentially) full price tickets. WeWork has these big empty buildings with the lights on, whether anybody uses them or not. Adding one more body doesn’t increase their costs that much. So discounting a membership at least helps bring some cash in and gets a new person interested in the service. The more people used their service, the more money Moviepass lost. With WeWork, they need more people to sign up to have a chance at getting out of the mess they’re in.
- effingwewt 5y agoVery true, I take back my very flawed analogy. This makes me want to watch the wework doc that just dropped. I obviously have much to learn about the whole deal.