How 2 Million People Loved MoviePass Nearly to Death
In 2012 I wrote:
What is strange about this business model is that the people that love your service the most are your worst customers. The people that essentially forget about it are your best customers.
Now in 2018, Bloomberg reports:
The parent company, Helios & Matheson Analytics Inc., which now owns 92 percent of MoviePass, said last week that it had just $15.5 million in cash at the end of April and $27.9 million on deposit with merchant processors. MoviePass has been burning through $21.7 million per month. A U.S. Securities and Exchange Commission filing last month revealed that the company’s auditor has “substantial doubt” about its ability to stay solvent.
Seems like they’ve had some time to figure this out already.
Extra creepy, the business actually sees itself as not a ticket-broker, but a place that collects and sells data on people:
Lowe can sketch an expansive vision of monetizing his data trove with targeted ads, reaching users with a demonstrated preference for body-horror films or female superheroes or poke restaurants.
But marketers are skeptical. Mark Douglas, CEO of digital ad platform SteelHouse, says companies would pay no more than a few thousand dollars for access to MoviePass’s customer database