‘Netflix for theaters’ MoviePass disrupting movie theater industry

Yet another industry-shaking paradigm shift is underway: a theater subscription service that lets users see as many theater movies as they wish for only $9.95. How does this work? The user pays MoviePass $9.95 a month and for each movie they attend, the company reimburses the theater. Unless there is some genius way to make the accounting of this work, MoviePass is doomed to fail. Each movie costs an average of $8.65. If a user sees more than one movie, MoviePass is losing money. Is this just an future IPO scam where investors pump cash in and the founder walks away rich? Do they plan on raising subscription costs? What do you think?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s