GadgetGuru
V.I.P. Member
Sounds like we just saw Moviepass fold. Customer Service hasn't responded in at least 6 hours on Twitter and there's complete radio silence from the company.
They never got the critical mass of users you need to succeed with this model. It worked for Amazon and Netflix because the former controls 50% of all e-commerce in many major markets, while the latter has 130 million subscribers (and rapidly increasing).They were hoping to survive like Amazon & Netflex did all those years without making real profits . The scam worked with them but it didn't work for Moviepass. Sometimes it works, but in this case it didn't.
I wouldn’t quite call it a scam. The idea behind growth stocks is that companies are forgoing current profits for future profits. That means investing all of their money (and then some) into the underlying platform. The platform, over time, will make more money because of all the investment.They were hoping to survive like Amazon & Netflex did all those years without making real profits . The scam worked with them but it didn't work for Moviepass. Sometimes it works, but in this case it didn't.
This would be more like netflix starting out now and paying current market rate for content. Studios used to give netflix content for cheap because they thought it would push viewers to new episodes on cable which it did for a while at least. Once people started to cut the cord they jacked up the rates accordingly. Netflix saw those rates and decided they were better off just paying to make their own shows.They were hoping to survive like Amazon & Netflex did all those years without making real profits . The scam worked with them but it didn't work for Moviepass. Sometimes it works, but in this case it didn't.
I don't think any investor thought the business model would fly but they wanted the back end. The subscriber info is worth more than the subscription fees. Seems like they are giving the 3 movies a month for $10 a try. Might float til the end of summer - I guess????I was referring to Amazon & Netflex during their early years operation. Lots of similarities, but they had the investors keep pumping money into them. Neither company had profits until well into their existence. We've had a store on Amazon for 15 years and my brother was selling content to Netflix when they were a start up, so I have pretty good understanding of where both were in their early years. Moviepass rolled the dice, and lost. The key is to keep the investor money coming in since the business plan ensured they were going to lose lots of money in the first years, like most internet start ups. The money flow stopped, they die. You win some, you lose some.
I even think $19.99/month is reasonable, especially given what AMC A-List is charging for less movies.
Not sure if you are aware but that article was from AugustMoviepass has now discontinued the Annual Payment.
MoviePass kills off its annual plan -- even if you already paid for it - CNET
And as that happens, AMC announces that they have hit 500K, and plan on expanding the offerings while doing a price increase.
AMC Theatres’ Stubs A-List Plan Hits 500,000 Subscribers | Deadline
I don't think any investor thought the business model would fly but they wanted the back end. The subscriber info is worth more than the subscription fees. Seems like they are giving the 3 movies a month for $10 a try. Might float til the end of summer - I guess????