A pass on Movie Pass

Movie Pass is supposed to provide subscribers as many movies as they want to watch in theaters for a $9.95 per month fee.

It sounds wonderful. Then you meet the horror film in the details. The problem is that they are counting on offsetting the high cost of movies in cities by getting more subscribers than in cities in rural areas where movies are cheaper.

This is a ridiculous business model. It would be like health care depending on offsetting medical costs by getting more people in rural towns to sign up, expecting those costs there to be cheaper while maintaining the flat rate across the board, it would be like Starbucks charging the exact same price for a Mocha Latte Half Calf Moomoo Whatever coffee in Manhattan as they do in Oatman, Arizona a town that in it’s heydey produced about $1 billion in mining gold, which depends on tourism today, and where real estate and wages are is 1/2 calf the 1/2 calf one quarter the New York City price. Why would anyone subscribe to Movie Pass in these areas where there are no theaters?

A Variety story states:

It’s a risky business model, because tickets in major markets such as New York City or Los Angeles routinely top $10. MoviePass pays theaters full price for the tickets its users purchase, so it is hoping that Mulla will be able to build up its customer base in cities such as Nashville and Dallas where tickets are cheaper.

Nashville has 600,000 people. New York City has 8 million which is 13 times that.The wages in Nashville do not compare to those near Wall Street in Manhattan.

Contrast successful business models based on how video stores worked for decades, now mostly replaced by Netflix, where they pay less for movies by buying licenses in bulk for streams or buying the DVD’s outright and waiting for movies to be available to the public on DVD. The foundation of it does not depend on bringing in rural customers.

There is nothing to compare Movie Pass to exactly but they seem to be looking for fools gold.

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Additional image:

Description Old U.S. Route 66,Oatman Highway, Oatman, Arizona. Taken 8/10/05 by en:User:Pretzelpaws with a Canon EOS-10D camera. Cropped 8/31/05 using the GIMP.
Date Image was upload to en wiki 06:32, 1 September 2005
Source Via en Wikipedia; see above
Author Pretzelpaws [1]
(Reusing this file)
Uploaded by the Drozdp