Re:MoviePass Owner Sued by Shareholders as Business Model Fa...
by WorldMaker on Thursday August 16, 2018 @01:16PM
(#17776588)
I don't think it's a closely guarded secret. The movie theater business is a century old textbook example of a marginal cost loss leader for concession sales.
Even for movies that are not as well popular and give more margin to exhibitors, it is very hard to see how you can accommodate moviepass and the crazy discounts they give. Lets take a person that sees about 4 movies per month which should be kind of usual for moviepass. That gives about $2.50 per showing. This has to be shared between moviepass, the theater and the movie owner. While before moviepass, only the theater and the movie owner could share $10.
I don't see how this does not end up severely impacting the profitability of the theater, the movie owner or both. I really do not see a win-win in the moviepass pricing model.