MoviePass Lost $150 Million in 2017

Is that Hollywood accounting?

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Prob will cancel if they significantly raise the price tho.

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How significant?

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.

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.

ah, well they should try and sell their subscribers to a cc company then and start making some serious money

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

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Wait. You could see 30 movies a month for $10

what kind of business model is that

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the same business model that gyms have operated on for decades

Sign up 1000 people for memberships at a gym that holds 100 people.

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the same business model that gyms have operated on for decades

Sign up 1000 people for memberships at a gym that holds 100 people.

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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.

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Their business model is nonsensical

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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.