Earlier quoted context omitted.
> We all knew the $10 a month plan was not going to be profitably by itself. How is this kind of "growth hack" not simply dumping[1]? The only new development here is that dumping is no longer limited to large companies with large war chests thanks to the availability of venture capital. The more interesting question is can healthy, truly profitable technology companies develop in an environment where they have to co…
I don't think the environment will stay like this for long. Investors in MoviePass will likely not make their money back. Or maybe they'll break even on a sale of assets to some major theater chain, if everyone involved is smart. Afterward, future investors in companies like this will use MoviePass as another example for the fact the times when you could form a business mostly based on collecting user data is over. T…
They are currently breaking even, as their models predicted. Even paying full price for each ticket. Their innovation was getting Mastercard to issue and process their own card, so the movie theaters can't block them without violating Mastercard policy!
Now their next plans are to promote indie films and much more. I do not think they need all this tracking to make that happen. Also, Uber tracks you before and after the trip.
At Qbix we would never resort to this kind of thing, however the current movie theater model sucks and the prices just keep rising. And also the founder is the same guy who founded Netflix and Redbox! This would be the third time he is upending the movie industry.