[slg]

Since MoviePass buys it tickets at retail costs, a single heavy user is exceptionally costly. Imagine someone who purchases a $15 ticket 25 times a month for a total of $375. MoviePass would need something like 40 users paying $10 a month who barely use the service in order to offset that single user. It therefore isn't surprising that MoviePass is making changes to curtail those heavy users. Even if only something like 1% of users abuse the system by sharing accounts or reselling tickets, that could be enough to sink the entire company.

[adamc]

Buying its tickets at retail cost is crazy...

[stefan_]

Their plan is to make it up in volume, clearly.

[giobox]

It’s either this, or grow big enough fast enough before the cash runs out that they have a strong bargaining position with big cinema chains to cut deals for cheaper tickets, perhaps also using the carrot of some kind of concession promotion to encourage subscribers to buy popcorn etc.

If this model works, it isn’t exactly hard for a large chain like AMC to do in house at all, I really don’t see the incentive to get into bed with MoviePass. Some European cinema chains already do this, like Cineworld in the UK.

[IncRnd]

It's all about Failing Fast and Failing Often in today's world of silly business sayings.

[pjc50]

Or as we used to say, anyone can sell a dollar for ninety cents.

[IncRnd]

You win! That's definitely a fast fail.

[pjc50]

The phrase is not my invention :) it or something like it was about during the first dotcom boom, said about companies like webvan and pets.com