If you ask me, this is the best bit.
but the company has continued to struggle as it blows through around $21 million per month, on average.
21 million dollars per MONTH! This is 'unsustainable' in its purest form.
"we're gonna be fine", says the CEO as he continues to sink deeper and deeper into quicksand
It was too good to last. They should've pulled the plug on this earlier.
I expect their competitors to 'disappear' shortly after they do.
This was inevitable but I don't regret for a second getting MoviePass. Saw so much shit I probably would have passed up if it wasn't effectively free.
I'll refer to something I said 3 months ago. Use the hell out of your card while you can, it's only a matter of time before investors stop wasting their money on this trainwreck of an idea.
I bought into Movie Pass early to get as much use of it as I could before the unsustainable business model collapsed and the company inevitably went bankrupt. You don't need to be a business major to foresee that the income scheme of selling user data to offset massive losses from people using your up-to-30-movies-monthly for $10 was never going to work out.
I was about to ask about their business model (how do they pay the theaters? Per subscriber, per ticket, just a certain amount of money each quarter?), because this just screamed "No one did a back-on-the-envelope calculation?", but I decided to look at their stock price first. Take a look at it, it's literally insane. Anyway, then I found this article:
https://www.marketwatch.com/story/the-spectacular-rise-and-fall-of-moviepass-2018-07-09-101033943
"Helios & Matheson was a sleepy data analytics company when it acquired MoviePass, a service with just 20,000 subscribers at the time. After slashing the MoviePass monthly fee to $9.95 from up to $50 a month, its subscriber base ballooned, crossing the 3-million mark in June."
"Under the MoviePass model, members pay $9.95 a month to enjoy up to one movie a day. The company pays full price for each ticket that a subscriber orders, which means it’s almost impossible for MoviePass to make a profit from the subscription service itself. The more subscribers go to the movies, the more money the company loses.
But MoviePass has made it clear it isn’t banking on subscriber revenue to make itself profitable. Its hopes are pinned on the potential of user data. The company believes its rapidly-growing subscriber base will provide a trove of data that can be used to sell advertisements and help drive box-office revenue, allowing the company to strike revenue-sharing and bulk-ticket deals with studios and cinemas."
They're literally retarded. Like, this is so, so dumb.
Hah, they've known GDPR was coming and that it would basically nuke their business model in the long run, effectively insuring that they can never expand in to the EU.
which is interesting since it used to cost significantly more, though that was under different direction
Theatre subscriptions are probably gonna be the only thing that saves theaters tbh. I'm sad movie pass probably won't survive, but I'm glad theatres started competing in response. Costco has a pretty good subscription deal for AMC now.
they underwent a 1-250 reverse stock split. my ~50 shares I got total for around 14$ was rounded to 1 share currently worth 2.32.
I didn't expect to gain money here but I guess I kind of fucked up a little
It's happening again
MoviePass - the subscription service which lets film lovers watch a movie every day in theatres for a monthly fee of $10 - appears to be down, just days after the company ran out of money.
Users are reporting outages on Twitter, with numerous customers describing a screen that displays the message "There are no more screenings at this theatre today."
https://money.cnn.com/2018/07/30/news/companies/moviepass-stock-falls/index.html
Oof, stock below $1 is grounds for removal from the index, isn't it?
A-yup
it's especially funny considering they did a 250 for 1 reverse stock split just a few days ago to avoid that
They've done what my old company did, reverse split to get back over a dollar, then fall below a dollar within a few days. They'll probably do another one to avoid gettingdelisted before the deadline, if they don't go completely bunk by then. When yu g below dollar, you get a warning for 6 months, and then you have 6 months to get above a dollar, and you only need to stay above it for a few days. So as long as you have enough shares to split, you can keep throwing yourself back up over $1.
From an outsider looking in the speed in which this company is crumbling is morbidly fascinating.
glad i jumped out of moviepass before it died
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