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It is like a Netflix for theaters. $10 and you can go to one movie per day all year long. 

FYI, 3 months and 8 days until Super Troopers II

This whole Moviepass business model made zero sense to me so I looked it up to see if it was for real and how can they make money doing it. Up until last August it was $50/month and they dropped it to $10/month. You can see one movie a day, but no special movies (3D, etc.). They pay the theatre the full price of the ticket. So if you see more than one movie a month they are definitely losing money on that deal.

Here is what they are banking on. That enough people sign up in low cost areas to cover the cost of tickets in major markets. And like a gym membership there will be a certain amount who sign up but don’t use it. And by drastically lowering their price the assumption is that many more people will sign up for the service. They track customer purchases and will start mining the data for targeted marketing. The example they used is that you can run a trailer on Facebook but Facebook has no idea if you saw the movie. With their data they can tell which movie you saw, and target the marketing accordingly, thus making money from advertising.

My wife is a movie nut so that is why I looked into it. I guess take advantage of it while it’s here. The business may not be around forever. Or it may depending on how many people sign up for it and how quickly they can monetize their customer base.

That’s your boring business lesson for the day. Not that anyone asked for it!

Very strong points analyst. I believe also their hopes and maybe there already is, a deal with movie theater chains too. Most movie theaters make their big bucks off of popcorn, soda and candy sales. So if movie pass means more people are going to the theater and buying concessions then theaters are winning huge too