Not that I have any insight, but I always got the impression that they were planning to get a significant fraction of the moving going public under their service. Then they could say "give us discounts or well take your chain off of our service" to the chains.
The long term plan was probably to get a large enough subscriber base that they could get some pricing deal from a couple major theater chains. Combine that with some money from selling customer data and they thought they could get profitable and probably could.