MoviePass is running out of money and needs to raise $1.2B(money.cnn.com) |
MoviePass is running out of money and needs to raise $1.2B(money.cnn.com) |
This is some dotcom bubble 1.0 level stuff, "we'll sell at a loss and make it up in volume".
> Previous SEC filings revealed that the company was burning through an average of $21.7 million every month operating MoviePass. In May it blew through $40 million.
With zero growth to their customer base another $1.2 billion would last them 30 months. But if all goes according to plan they could lose this much faster:
> The service recently passed 3 million subscribers, and is trying to draw in more as part of the plan to stay afloat. Executives want to reach 5 million members by the end of the year, a number they say should help make the business profitable.
Who would be crazy enough to invest?
Most people only care about the widely released movies. AMC has the $19.99 Stubs A Plus plan where you can see up to three movies a week, any format, you don’t have to jump through hoops, and you can buy in advance. I’m sure the other chains are going to follow suite.
From what I have read, AMC is accounting for each movie that you see as a ticket being sold at $8.99 and they give the movie studio 45-65% of the “ticket price”. They also have 65% profit margins on concessions. AMC can do it profitable. Movie Pass, can’t.
https://www.marketwatch.com/story/the-spectacular-rise-and-f...