Earlier quoted context omitted.
I don't get this since MoviePass can only be used once per day.
Since you can buy tickets in advance, people were buying tickets on different days for a future showing.
[deleted]
SEC filing suggests MoviePass’ time is running out
31–40 of 119 posts
Re: SEC filing suggests MoviePass’ time is running out
#32Earlier quoted context omitted.
Since you can buy tickets in advance, people were buying tickets on different days for a future showing.
You've only ever been able to buy tickets for showtimes on the same day they were bought.
You need to tell MoviePass that you're buying a ticket for that day, and they load the money onto a debit card. You can then use that money to buy whatever ticket you want.
Because of that, MoviePass recently began requiring people to take photos of the tickets they buy. This introduced a new step to the process: now, you need to buy a ticket, take a photo for MoviePass, and then exchange it for the ticket you actually want.
Re: SEC filing suggests MoviePass’ time is running out
#33> When the company changed those rules to limit subscribers so they could only see a given movie once, no matter how long it runs in theaters, a support ticket stated, “we hope this will encourage you to see new movies and enjoy something different!” It turns out that was a blatant effort to cut costs, with today’s filing explaining that the move “enabled us to reduce our cash deficit during the first week of May 201…
I've seen 3 movies in theaters in the past year - Star Wars, Greatest Showman, and Avengers.
My wife, a Moviepass subscriber, has been to the movies some 60 times since December. She typically goes 30-40 times a year, it's one of her and her friends' favorite hobbies. You might go to coffee or the bar, I might go to the park or the gym, she and her friends love going to the movies. It's just a thing to do for a couple hours on a weeknight.
There was no 'abuse' in the sense of sharing her pass among friends, or buying tickets and not going to the movie. She does like a frozen coke sith her movie, and she buys the $35 free refill popcorn bucket 3 times a year, so there was quite a bit of profit for the theater, but she was not profitable to Moviepass and they might feel that normal use for her was abuse.
She would not be profitable unless (a) Moviepass can negotiate The problem is, it's super easy to do the math on whether or not you would have spent more on tickets than moviepass.
Re: SEC filing suggests MoviePass’ time is running out
#34It doesn't seem to be the sort of thing that even has a chance of being profitable... The only reason to join is to save money on tickets, the only way they make money is if people spend more on membership fees than the tickets they buy.
The intention was for the core "unlimited movies for a monthly fee" to break even (which was plausible based on spiked usage up front that tails off ala gym memberships and things like bulk ticket buying). In addition to collecting analytics data and selling it to movie theaters and studios, the service also makes money by promoting movies within the app (paid placement).
https://www.recode.net/2018/2/18/17025372/transcript-moviepa...
Re: SEC filing suggests MoviePass’ time is running out
#35Earlier quoted context omitted.
I feel like they're just waiting to gut the service (4 movies a month, or less) and hoping enough people stick around that they're better off. Before the price drop they were taking in about $1 million/month (20,000 subs at $50). They're over ~2~ 4 million subscribers now at $10/month. If they have even a 5% retention rate they'll have increased their revenue to $2 million/month.
They're already at 4/mo for new subscribers.
They've brought the 9.95 "unlimited" plan back, and the cheaper 7.95 plan now only offers 3 tickets per month.
Re: SEC filing suggests MoviePass’ time is running out
#36Earlier quoted context omitted.
I do know people who go to see the latest movies (particularly Marvel ones, Star Wars, etc.) more than once. I imagine MoviePass would only encourage that behavior. (but I agree that abuse probably has something to do with it as well)
I really don't see how theaters haven't caught on and started a subscription service of their own. Just an obvious way to get people to the theater (multiple times) and by snacks.
They have. I'm a member of the Cinemark Movie Club.
Re: SEC filing suggests MoviePass’ time is running out
#37> When the company changed those rules to limit subscribers so they could only see a given movie once, no matter how long it runs in theaters, a support ticket stated, “we hope this will encourage you to see new movies and enjoy something different!” It turns out that was a blatant effort to cut costs, with today’s filing explaining that the move “enabled us to reduce our cash deficit during the first week of May 201…
I've seen 3 movies in theaters in the past year - Star Wars, Greatest Showman, and Avengers. My wife, a Moviepass subscriber, has been to the movies some 60 times since December. She typically goes 30-40 times a year, it's one of her and her friends' favorite hobbies. You might go to coffee or the bar, I might go to the park or the gym, she and her friends love going to the movies. It's just a thing to do for a coupl…
When I referred to abuse what I meant to say is that the number of repeats suggests that a great many ticket purchases are not for the subscriber.
Re: SEC filing suggests MoviePass’ time is running out
#38MoviePass sorta feels like the insurance game - it makes sense from a business perspective if you can sell to enough people of varying interest in going to the theater to watch a movie...
Re: SEC filing suggests MoviePass’ time is running out
#39> When the company changed those rules to limit subscribers so they could only see a given movie once, no matter how long it runs in theaters, a support ticket stated, “we hope this will encourage you to see new movies and enjoy something different!” It turns out that was a blatant effort to cut costs, with today’s filing explaining that the move “enabled us to reduce our cash deficit during the first week of May 201…
"Abuse" is a strong word and the quote you've given addresses this when it says: > ... whose astounding box-office performance is driven by repeat visits I think you underestimate how often people will see the same movie. Getting tickets for your friends for MoviePass is a whole separate issue (and clearly abuse). But is seeing the same movie more than once "abuse"? That's more debatable. But repeat viewings clearly…
"Abuse" is a loaded word, but I can understand what they mean.
A lot of services depend on individual usage staying in certain bounds, and which would rarely be exceeded by the typical, intended usage; but where the provider doesn't want to commit to a hard cap (cough ISPs, Github). These services would collapse if everyone started re-selling the good, because it vastly changes the use profile. The term "abuse" is understandable (if not always warranted).
But you're right: one individual seeing the movie more than once is not inherently "abusive", even in that sense. But reselling is, for sure: the typical user is not going to see a movie every day, and the MoviePass model is based on such a "gentlemen's agreement", where people won't go out of their way to use every day's ticket (except the rare oddball user).
As a way to root out actual abuse, they have to use some crude heuristics, and one of them is repeat movie viewings. Yes, some honest non-resellers see movies more than once, but the most common case is this kind of reselling.
Re: SEC filing suggests MoviePass’ time is running out
#40I get my money's worth out of MoviePass. I'll milk that membership until it dies or the ROI goes negative.
I love you MoviePass, but you are not bright.