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MoviePass couldn’t afford to pay for movie tickets on Thursday

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Re: MoviePass couldn’t afford to pay for movie tickets on Thursday

#101

Earlier quoted context omitted.

I sometimes fear that, like bookstores and Toys R' Us, if you don't patronize these businesses, they will go away. As a kid I couldn't imagine a world without bookstores, now there aren't any. Same with Toys R' Us. Kids will never have that experience again. Yes, movies are expensive, but would you rather them not be there at all?

Indeed, when the home video/DVD usage was at its peak around the '90s, movie theaters were assumed to be a dying business by most people. Then consolidation and marketing to a younger generation breathed new life into the industry, with ticket prices going up alongside.

I wonder if the proliferation of high definition and TVs with screens 2 or 3 times the size of TVs in the 90's for the same price will make a difference this time around. Back then, theaters were still the best way to see a new movie. Now though, I know a few people who's living rooms are far superior to a movie theater in every way, from the screen, to the sound, to the seats and honestly company and environment. Going to a theater used to be worth it even if the movie wasn't very good, just to get to see a movie on something different than a tiny 20" crt TV. Now it's really only worth it for great movies.

Re: MoviePass couldn’t afford to pay for movie tickets on Thursday

#102
post #21

Earlier quoted context omitted.

Maybe hoping to make their money back when people let their subscriptions idle during the off season for movies...but this is most attractive avid movie goers so I don't see this working. People who don't go to movies all the time likely won't get it.

The problem with this idea is that (at $9.95) someone in my area needs to see one movie in the evening and they're ahead. Two movies, and MoviePass needs them to not see a movie for a full month to almost catchup, and they'd still be behind by $1.50. During the big movie seasons, it's easy to see 2-5 movies in a month. I've only seen 2 movies (since April) that I wouldn't have seen without MoviePass. I've seen 15 mov…

you didn't really break even as you said it yourself you would only have paid for two movies out of the 15.

The question is, do you really value the other 13 movies at (70$/13) a piece ? In my case probably not.

Re: MoviePass couldn’t afford to pay for movie tickets on Thursday

#103

Earlier quoted context omitted.

They lose a little money on equipment maintenance over time, but it's nothing like going to a movie.

I’d imagine even a moderately engaged gym user would lose the gym money on every visit, in staffing costs alone. The marginal cost of each user rises too, as people that are unable to get on machine are more likely to churn. It is however usually outweighed by the huge numbers of people who simply do nothing with their subscription.

In my professional experience with gyms, the most expensive thing you can do, is use the treadmills a lot. They are the most expensive machinery, and most prone to breaking down.

Re: MoviePass couldn’t afford to pay for movie tickets on Thursday

#104
post #23

Earlier quoted context omitted.

They already do strongarm some smaller theaters into getting a cut of concessions.

What leverage do they have to strongarm? If a theater is popular, that means MoviePass customers like the theater. MoviePass needs the theater more than the theater needs MoviePass. If MoviePass chooses not to pay for tickets at the theater, that’s a MoviePass problem.

If MoviePass represent let's say 50% of your customer and suddenly they remove your theater from the list, I will bet you will lose about 90% of those MoviePass customers, so you will lose about 45% of your customers.

I have a MoviePass, and when they removed a big AMC theater around my place a couple months ago, I simply drove two more miles to the Century theater. I have zero loyalty to a specific theater//chain, I care a little bit about better seats though.

So yeah, their goal was to get that bargaining power by getting as many users as possible.

Re: MoviePass couldn’t afford to pay for movie tickets on Thursday

#105

Earlier quoted context omitted.

> MoviePass drives traffic to movies Does it? Were those people going anyway? Would they go if they had to pay one cent more? They’re just a middleman aren’t they? How are they driving anything or adding any value? > that's a $20+ ticket that AMC can't sell to a paying customer But the subscribers are paying customers aren’t they? Do you mean they can’t sell it to another paying customer? So you’re just saying they c…

It is an anecdotal response to your first point, but since you didn't place a threshold I'll say it anyway. I have two friends who I'd describe as average theatre goers. Maybe a movie every 2 - 3 months. Since using MoviePass they both average about two movies a month during 2018. I am not sure how sustained that behavior will be, but at atleast in this early stage it is lasting. As for the second point, he is arguin…

So the studio gained audience but (excluding the MoviePass susididy) not any money so what’s the benefit of that? In fact they might be setting an expectation that film tickets should be lower in people’s minds!

If you give me free tickets to the cinema I might go. If you say now I’m in the habit can you charge me $1? No thanks not worth it now.

Re: MoviePass couldn’t afford to pay for movie tickets on Thursday

#107

Earlier quoted context omitted.

It's crazy. The data is basically worthless. I honestly don't know if they will survive for more than a few months. I was just thinking, what could they possibly do to survive as long as possible? They could introduce incentives to reduce the number of movies people saw a week? Maybe some kind of credit system, where customers built up points towards a premium membership. They could also start taking the most expensi…

Weaponizing customer data like that would literally be illegal in the EU, so doesn't seem like the best plan... Other ideas might work!

Moviepass is not available in the EU.

Re: MoviePass couldn’t afford to pay for movie tickets on Thursday

#108
post #31

My wife and I are so frustrated by the movie going experience in the US. In Taiwan, everyone is permitted to bring food and drinks to the theater and that's pretty common. In the US I'm forced to pay an absurd amount of money for awful junk food. No thanks, I want to drink tea while I watch a movie. We always have to smuggle in drinks because the theater just doesn't provide any good options. None of the movies is th…

Movie theater food is expensive because theaters in the US make almost all of their profits from the food. The movies are just a vehicle to get you to buy the popcorn and soda. On big blockbuster releases, like Star Wars or Mission Impossible, the movie theater may only get 10% of the gross ticket price on opening weekend, with the remainder going to the distributor. Overseas distributors Asia have less leverage beca…

>In Europe, audiences prefer more avant garde films (read: bad films which pretend to be about something) so theaters have significantly more leverage overage distributors

Wow, sorry that somebody on earth wants to watch something other than comic book movies

Re: MoviePass couldn’t afford to pay for movie tickets on Thursday

#109
post #81
post #63

Earlier quoted context omitted.

Does this service have a name?

AMC Stubs https://www.amctheatres.com/amcstubs I've been a subscriber for a few years. They waive online ticketing fees and you get $5 vouchers for every $100 spent (among other perks). It's been worth it for me.

The base model of stubs is free. You still get $5 Tuesdays.

Re: MoviePass couldn’t afford to pay for movie tickets on Thursday

#110

If I am a traditional 'tech' company - I can afford to lose money when I am investing it in my platform or technology. It's like borrowing money to invest in your assets. For MoviePass, they are losing money and passing it off to theaters - it's like borrowing money to buy more ingredients for a failing restaurant. You can't charge less than the marginal cost, it doesn't make sense! I am trying to wrap my head around…

The Nerdwriter has a good video (short, just 6 minutes) about it: https://www.youtube.com/watch?v=w876zZZIb10 The gist of it is, they're hoping to grow so big that movie theaters will have no choice but to negotiate with them, to share part of the revenues they bring theaters from people who normally don't come watch movies on a whim anymore.

Isn't that kind of rent-seeking?
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