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

money.cnn.com

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

#181

Post by stuckinarut »

jld wrote: post #26
legitster wrote: post #20

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…

Becoming movie payola was the way I thought they would go. They could be an avenue for studio to discount tickets to specific films without some of the problems of traditional couponing. This could either just drive buzz, or could allow studios to goose opening weekend sales by paying MoviePass to push films, as well as reimbursing MoviePass the ticket cost. Probably not enough to become profitable though.

Didn't moviepass just show they aren't capable of pushing a movie with their big "Gotti" campaign?

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

#182

Post by ironjunkie »

balls187 wrote: post #165
ironjunkie wrote: post #158

Earlier quoted context omitted.

This unfortunately is probably the untold goal of 80% of startups around the Bay area that have unsustainable business models. What I find ethically borderline is that no founders will admit this, they will all pretend their goal is to make it a super successful sustainable company. As you said, the issue is that founders will usually get a moderate payout (a couple Million$), while even early employees will get almo…

The problem isn't necessarily one of ethics, it's that employees aren't able to appropriately assess a companies business strategy. 1. What is your monetization strategy? 2. What is your plan for profitability?

Exactly, also asymmetrical decision power and non-aligned incentives.

If you are a founder and you get a proposal for a 10M$ acquisition, you know you will make something around 2-3M$, which is not too bad.

The employee however will make a small 100k if he owns 1% after dilution, which is usually not the case. This is after many years of hardwork, probably taking a paycut of at least 100k$ per year compared to a big company.

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

#183

Post by stuckinarut »

acchow wrote: post #111
legitster wrote: post #20

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…

> You can't charge less than the marginal cost, it doesn't make sense! It worked for Uber tho. And now they've raised prices in markets where they are established.

Except Uber was building a market.

If I start a company that just subsidizes Uber rides I'm never going to make money. Unless Moviepass provides some actual value to theatres, they won't make money. Theatres aren't going to give them discount rates to Star Wars or Avengers 4 because those movies sell out anyway.

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

#184

Post by stuckinarut »

mulletbum wrote: post #156
reaperducer wrote: post #147

Earlier quoted context omitted.

Why build when you can buy? Universal just has to buy MoviePass. Assuming it has the cash. From what I've read over the last few years, the big Hollywood studios are not cash-rich.

I forgot where I read it, but I though Moviepass's ability to geolocate and push money onto a credit card was considered a good idea and could sold.

Hardly seems like a large barrier. I would think the biggest issue would be finding the card company to partner up with, and then it doesn't sound like a very high barrier.

For theatres it's even easier to offer an unlimited option since they can just have the accounts internally. Studios can partner with theatres, though that seems overly complicated (I went to Mission Impossible last night, so I need a paramount account?)

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

#185

Post by stuckinarut »

stevewillows wrote: post #126
wildpeaks wrote: post #86

Earlier quoted context omitted.

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.

This is sort of like Amazon's tactic with ebooks and such. Lose until your volume is high, then when you've cornered that particular market, negotiate a workable cost per unit. I really hope it works out -- but in all sincerity, I don't see why the theaters themselves aren't just copying this for their chains. MoviePass has already demonstrated the market.

> I don't see why the theaters themselves aren't just copying this for their chains

They are.

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

#186

Post by stuckinarut »

jonny_eh wrote: post #131
anamexis wrote: post #128

Earlier quoted context omitted.

Theaters are copying this for their chains - see Cinemark Movie Club and AMC Stubs A-List.

And to me that means Moviepass has done its job. I subscribed to the annual Moviepass plan, tried to use it last night (which failed, see article), so signed up for the Cinemark Movieclub, which lets me buy tickets online, and days in advance.

I might sign up for the AMC one, or regal.

mostly I like to see movies at Cinerama though. Just way way better.

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

#187

Post by stuckinarut »

SilverCurve wrote: post #91
nodesocket wrote: post #89

Earlier quoted context omitted.

But why not increase the membership fee marginally in the meantime to stay afloat? I suspect the vast majority of members would stay. Also as another user posted below, set a cap on the number of movies you can view per month and offer a premium unlimited membership upsell.

They are starting to do it. One of their new features is charging a few dollars on "hot" show time.

I'd rather just get a ticket to a different movie twice, via moviepass, and just pay to see the "hot" movie normally.

I hate this surge pricing bullshit. It's just scalping and I'd rather lose moviepass entirely than every contribute to that shit.

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

#188

Post by klenwell »

sf_rob wrote: post #138
legitster wrote: post #20

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…

>You can't charge less than the marginal cost, it doesn't make sense! The old joke is "Sure we have marginal losses, but we'll make up for it with volume!"

How do you make money doing this? The answer is simple: volume.

https://www.nbc.com/saturday-night-live/video/first-citiwide...

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

#189

Post by amerkhalid »

clircle wrote: 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…

Well I have been to some interesting theaters where it is pretty common to sneak in outside food. It is usually not a not a good experience. Some of foods can be very pungent or have strong smell.

I rather prefer bland food of American theaters when people are sitting in close proximity.

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

#190

Post by s73v3r_ »

clintonb wrote: post #30
s73v3r_ wrote: 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.

I'm not 1000% up on how they tried to do it, but I remember seeing (on HN, I think) that they would see a non-chain theater be popular, and so they would threaten to not list their theater in the app unless they gave them a cut. The commenter said they saw it with 2 theaters, both initially told MoviePass to go pound sand, so they were delisted. One barely noticed, but the other saw a significant decline in patronage, so they had to go back to MoviePass, hat in hand.
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