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How Does MoviePass Make Money?

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Re: How Does MoviePass Make Money?

#41

At least in the UK each of the big cinema chains runs there own equivalent to this, and they push their staff hard to sell passes because the actual seat costs them a negligible amount of money, and people who “aren’t paying” for the seat are more likely to buy food and drink.

[deleted]

Re: How Does MoviePass Make Money?

#42

I still remember when movie theaters provided a different experience - and I'm in my late 20's, so it was not that long ago. Movie theaters became just another living room - people go there chat, comment and eat during the movie just like they were at home. It became such an obnoxious experience, where people are shoved into a room and door is closed. This goes to say: movie theaters had a lot of distribution costs r…

It depends on the theatre. I only go to a regular movie theatre when I'm back home seeing my parents. I enjoy the theatre experience where you get reclining seats and you get to reserve your seat beforehand. The next step is the dinner and movie experience where you get to both enjoy reserved seating and get food served while you're eating. Those theatres by necessity aren't as crowded and you have a much better expe…

That's weird — here, the more full-service a theater is, the more expensive it is. Some theaters have more extensive food selections and serve booze, and those are more expensive than normal theaters. Others actually have servers take your order and bring it to you in the theater, and those are more expensive still. I figured it was a sort of price discrimination — the people who want to eat expensive food while watching a movie are less likely to care if the ticket cost an extra $5 because that's a tiny fraction of the evening's total cost.

Re: How Does MoviePass Make Money?

#43
post #24

Earlier quoted context omitted.

I've seen that kind of behaviour in the US (and that was 10 years ago already). I've never seen it in Europe however, I just thought that's the way Americans enjoy a movie in a theater (a way that really turns me off, actually).

Where in the US have you been watching movies? I’ve never experienced this. The worst I’ve seen (and it bugs the heck out of me still) is people clapping when something big happens, but that is still quite rare. I’ve seen films in upstate NY, SF, SD, LA area, and beautiful New Hampshire.

That was in the Bay Area (SF, Mountain View, San Mateo...)

Re: How Does MoviePass Make Money?

#45

I don't quite follow the angle of promoting smaller studios' movies. If I am such a studio, and pay moviepass $100k to push a movie, and then that results in $1M tickets sold thru MoviePass, and I get $500k (or whatever), didn't MoviePass just lose $900k? MoviePass is both the marketing channel AND consumer. The studio has to make a profit and that has to come from somewhere - MoviePass' profit.

Ah, but it their customers watched other movies, they would have lost $1M, so it's better. If the intent is to get movie attendance data at any cost (as it seems), getting it at less cost is better.

Re: How Does MoviePass Make Money?

#46
How do so many other companies like this make money? For example, HQ: the live trivia game show app that gives away a few thousand dollars multiple times per day. There's no ads, and no in app purchases. Besides burning through VC money like it's 1998, what's the business model?

Re: How Does MoviePass Make Money?

#47
post #28

> Helios and Matheson, an analytics company which has a majority stake in MoviePass This here is the juice: Big data. The more customers they have, the better - they have validated full names, birthdates, addresses and CC numbers (and most likely also ethnicity) linked with the data when they visited what movie and even if the customers repeatedly visited a movie. MoviePass has, effectively, four distinct customers:…

Is that data that valuable though? Its not that unique, off the top of my head there are several companies that have similar datasets, Every movie theatre chain, every online movie booking service, every movie review site

Chains have data only for the times people visited their own chains (and might not have much info for counter sales), online booking services have a similar problem, movie review sites are much more limited in that not everyone writes a review for any movie they watch, leave alone all the movies they watch.

Re: How Does MoviePass Make Money?

#48
post #45

I don't quite follow the angle of promoting smaller studios' movies. If I am such a studio, and pay moviepass $100k to push a movie, and then that results in $1M tickets sold thru MoviePass, and I get $500k (or whatever), didn't MoviePass just lose $900k? MoviePass is both the marketing channel AND consumer. The studio has to make a profit and that has to come from somewhere - MoviePass' profit.

Ah, but it their customers watched other movies, they would have lost $1M, so it's better. If the intent is to get movie attendance data at any cost (as it seems), getting it at less cost is better.

True. How do you know they would've gone to see a movie though?

That's what seems weird about this whole gravy train - the various drivers of the business clash with each other. More movies per person, more data, but more margin loss. Fewer movies per person, more margin, less data. More studio deals, more revenue, less margin.

I think they're exploring various business models and finding where the sustainable value is. Will be interesting to see!

Re: How Does MoviePass Make Money?

#49
post #46

How do so many other companies like this make money? For example, HQ: the live trivia game show app that gives away a few thousand dollars multiple times per day. There's no ads, and no in app purchases. Besides burning through VC money like it's 1998, what's the business model?

No ads doesn't mean your data isn't being used for ads. It's likely being sold to orthogonal adtech businesses. i.e. the company collecting the data is rarely the one using it, it usually just sells it.

Re: How Does MoviePass Make Money?

#50
post #45

I don't quite follow the angle of promoting smaller studios' movies. If I am such a studio, and pay moviepass $100k to push a movie, and then that results in $1M tickets sold thru MoviePass, and I get $500k (or whatever), didn't MoviePass just lose $900k? MoviePass is both the marketing channel AND consumer. The studio has to make a profit and that has to come from somewhere - MoviePass' profit.

Ah, but it their customers watched other movies, they would have lost $1M, so it's better. If the intent is to get movie attendance data at any cost (as it seems), getting it at less cost is better.

This is a way to reduce the costs, but it can't be a way to make any profit (or just break even). You'll always burn a lot of money.

I can't believe there isn't a way to get movie attendance data for less than, say, 5$ per data point.

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