- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
MoviePass Lost $150 Million in 2017
Posted on 4/18/18 at 8:00 pm
Posted on 4/18/18 at 8:00 pm
Posted on 4/18/18 at 8:03 pm to Green Chili Tiger
Not surprising. I'm sure they'll be fine when they sell data and raise the price per month to like 20 or 25.
Posted on 4/18/18 at 8:21 pm to Green Chili Tiger
Is that Hollywood accounting?
Posted on 4/18/18 at 8:30 pm to Green Chili Tiger
I got in when it was 6.95 a month. Prob will cancel if they significantly raise the price tho.
Posted on 4/18/18 at 8:39 pm to WB504
quote:
Prob will cancel if they significantly raise the price tho.
How significant?
Posted on 4/18/18 at 8:43 pm to Green Chili Tiger
Their business model is nonsensical
Posted on 4/18/18 at 9:51 pm to Green Chili Tiger
I’m sure that was expected. They are running a loss leader until their customer base makes up a big enough portion of movie theaters’ customer base that they can go to them and demand to pay them a lower price per ticket.
Posted on 4/19/18 at 12:05 am to Green Chili Tiger
I think they took a set amount of money and are waiting for their base to get large enough so that then they'll be able to up the prices and sell data and remain afloat after the initial base jump off.
Posted on 4/19/18 at 7:50 am to TheWalrus
Isn't it a credit card?
They just have not realized profits yet. The way deals like this work are you approach the card company and promise to bring them x number of clients that will spend x number of dollars per year. card company says ok, we will give you x percentage of whatever your client base spends per year, after they hit thresholds. The movie pass client base has not hit the threshold yet, and depending on their rebate agreement with the card company they could be in store for a windfall of realized and recurring profits at any point in the near future.
FWIW, their income model probably has nothing to do with monthly subscription fees or movies. It's all based on the size of their consumer base and how they can sell that buying power to different entities. They could very well lower the monthly fee if they know how to negotiate deals properly.
They just have not realized profits yet. The way deals like this work are you approach the card company and promise to bring them x number of clients that will spend x number of dollars per year. card company says ok, we will give you x percentage of whatever your client base spends per year, after they hit thresholds. The movie pass client base has not hit the threshold yet, and depending on their rebate agreement with the card company they could be in store for a windfall of realized and recurring profits at any point in the near future.
FWIW, their income model probably has nothing to do with monthly subscription fees or movies. It's all based on the size of their consumer base and how they can sell that buying power to different entities. They could very well lower the monthly fee if they know how to negotiate deals properly.
Posted on 4/19/18 at 7:53 am to Green Chili Tiger
They also spent a bunch of money in growth and acquisitions. Not that surprising that they were in the red
Posted on 4/19/18 at 7:54 am to DirtyMikeandtheBoys
It’s not a credit card. It’s a subscription service just like Netflix essentially
Posted on 4/19/18 at 7:58 am to wildtigercat93
ah, well they should try and sell their subscribers to a cc company then and start making some serious money
Posted on 4/19/18 at 8:33 am to Green Chili Tiger
How long was Netflix in the red?
Posted on 4/19/18 at 10:24 am to Fewer Kilometers
I think Netflix is super secretive with their accounting. Every year there seems to be a “Netflix is going bankrupt” article followed by a “Netflix is putting xxxx more millions in original content
Posted on 4/19/18 at 10:53 am to Green Chili Tiger
Wait. You could see 30 movies a month for $10
what kind of business model is that
what kind of business model is that
Posted on 4/19/18 at 11:10 am to CP3LSU25
quote:the same business model that gyms have operated on for decades
Wait. You could see 30 movies a month for $10
what kind of business model is that
Sign up 1000 people for memberships at a gym that holds 100 people.
Posted on 4/19/18 at 12:33 pm to Pilot Tiger
quote:
the same business model that gyms have operated on for decades
Sign up 1000 people for memberships at a gym that holds 100 people.
Gyms frequently go out of business, at least the chains. The model only works if people pay and don't go.
I do think movie pass could work. I wish my movie buddies didn't all have kids.
Posted on 4/19/18 at 2:37 pm to Pilot Tiger
quote:
the same business model that gyms have operated on for decades
Sign up 1000 people for memberships at a gym that holds 100 people.
Not a good comparison at all.
I paid for the $90/annual moviepass in October last year, which is the equivalent of $7.50/month.
On moviepass they pay per movie you go see. So if I got to 0 movies this month, they just made $7.50 that month on me. If I go to 1 movie, and it costs say $13.27, they pay that full amount and are now in the red on me for $5.77 that month. If I see 2, 3 , 4 movies all for the same price that month, they get exponentially more in the red.
Funny enough, my wife and I sometimes go see a movie on Tuesday which is $5 day at AMC. So 2 of us cost like $11 and we can use just 1 moviepass to pay for that (moviepass caps a ticket at like $15 or less or so), they also only let you see 2d movies, no imax, no 3d.
Gyms are quite a bit different than that, you dont break their bank by using the gym twice in a month.
Moviepass just needs to figure out how to sell folks data, there's a reason you are "Checking in" to a movie at a particular time at a particular place before being able to use your card.
This post was edited on 4/19/18 at 2:40 pm
Posted on 4/19/18 at 3:11 pm to thunderbird1100
quote:
Moviepass just needs to figure out how to sell folks data, there's a reason you are "Checking in" to a movie at a particular time at a particular place before being able to use your card.
The reason for "checking in" is so that MoviePass users aren't lending their MoviePass cards to friends. If your phone has to be in vicinity of the theater, then it is much harder for you to let someone else use your card.
Just by going to the movie you're letting them know where you are. Adding a phone check-in as a location device only tells them the amount of time between you showing up in the parking lot and buying your ticket.
Posted on 4/19/18 at 3:22 pm to TheWalrus
quote:
Their business model is nonsensical
If their source of revenue was strictly from subscribers I would agree with you; however, I see them using these cheap rates to gain popularity so they can make money off of (as someone else pointed out) selling data and going public. Wall street trading is where the money is made.
Popular
Back to top
Follow TigerDroppings for LSU Football News