How Will MoviePass Stop Me From Putting It Out of Business?
It took less than two hours -- essentially as long as it took me to catch The Disaster Artist on Sunday night -- for me to become a money-losing subscriber for MoviePass and majority stakeholder Helios and Matheson (NASDAQ: HMNY). I finally joined the growing number of movie buffs willing to pay $9.95 a month for unlimited daily multiplex screenings, figuring I would enjoy the entertainment industry's most unsustainable business model from the inside before the cops of fiscal responsibility raid the party.
AMC Entertainment (NYSE: AMC) charged my MoviePass debit card $12.30 for the ticket, and the multiplex giant is charging the celluloid subscription service the full price for the admission. AMC is no fan of MoviePass since it devalues the movie-going value proposition, but it doesn't have a problem collecting an average of $11.88 per ticket from MoviePass purchases. AMC has no intention of discounting the tickets for the benefit of MoviePass the way that some smaller chains have done, and that's just one of the reasons why the platform is doomed at its current price point.
Image source: MoviePass.
Source: Fool.com
