I think that, for just once in our entire lives, we, the consumer, should be grateful that it was the COMPANY that had to bend over and spread cheeks, not us.
You will never see anything like this again, trust me
Isn't Spotify going through the same shit? They aren't making enough from Premium + ad revenue to pay the licensing fees.
They cover the licensing fees, they just don’t cover all the other costs of business. They’re getting big enough that they can rake the industry over the coals tho, so I think they’ll end up profitable
OK that makes sense. The server costs, software development, etc can't be cheap either.
Hopefully they can get some sway, the whole industry is still trying to deal with the Internet changing the game and it will be the early adopters like Spotify and YT music that set the tone.
This is honestly the plan of like 99% of these "startups". Just let us bleed money out of our ass for a decade and maybe we'll discover a business model in the time.
I've said it before, but "to each according to their needs" only works as long as you realise the government isn't going to consider new iPhone XIIIs and the latest capeshit movie in Ultra HD to be "needs"
Nah, apparently it worked well enough for both Regal and Stubbs to imitate it.
I think everyone understood that the price was unsustainable. The gamble was in trying to grow the customer base quickly and then slowly raising prices and cutting costs. Mostly i think what fucked them was a miscalculation of how much each individual user would cost. Basically, normally woth this strategy, you figure out how much users are gonna cost you, then you get funds to give you a runway long enough to add more users and grow the userbase. But here, because they are providing unlimited movies and they have to pay the theater for each viewing that results in a huge cost spike without necessarily having a correaponding user growth.
Man, i could really see this thing written up as a Case Study in HBR someday.
Actually I just looked it up, the entire pricing model that the studios charge to theaters is based on a ticket sold. So if they gave away tickets they'd still have to pay the studio each time someone came to see. Really this is something that requires change by the entire industry. It's incredibly stupid of producers to not leverage the non-rivalrous nature of their goods, which allows them to drive up demand by offering unlimited usage at little to no cost to themselves, and instead stubbornly stick to the old model of making people pay per work.
I don't think they realized how much people's viewership would increase once given unlimited viewings.
It honestly would be a good business model for theaters, instead of charging two months of Netflix literally to just project a couple of hours of capeshit onto a screen to a mostly empty theater, maybe provide a subscription service and utilize some of that empty space. But no, we're just going to sit here and charge and arm and a leg and wonder loudly why the hell nobody is coming. Moviepass has been a bonanza for theaters, but after it's gone their just going to sit there and scratch their heads.
21 comments
1 Butch_Patterson 2018-07-31
Isn't Spotify going through the same shit? They aren't making enough from Premium + ad revenue to pay the licensing fees.
1 uniqueguy263 2018-07-31
They cover the licensing fees, they just don’t cover all the other costs of business. They’re getting big enough that they can rake the industry over the coals tho, so I think they’ll end up profitable
1 Butch_Patterson 2018-07-31
OK that makes sense. The server costs, software development, etc can't be cheap either.
Hopefully they can get some sway, the whole industry is still trying to deal with the Internet changing the game and it will be the early adopters like Spotify and YT music that set the tone.
1 watermark02 2018-07-31
This is honestly the plan of like 99% of these "startups". Just let us bleed money out of our ass for a decade and maybe we'll discover a business model in the time.
1 HailSanta2512 2018-07-31
Where are these people getting their money and how do I get some
1 rnjbond 2018-07-31
Most startups are losing money, but negative gross margins are a step up
1 rnjbond 2018-07-31
Spotify doesn't have negative gross margins
1 UBIisLazy 2018-07-31
I would believe it. I get premium from Spotify and over the past couple of years their library has less good shit and more no-name filler.
1 Butch_Patterson 2018-07-31
I just looked through my library last night and a good 30% of the songs I loved and saved are no longer available.
1 SizeOfThisLad 2018-07-31
What a bunch of bitches
1 YameteOniichanItai 2018-07-31
What kind of fatcat shit is this?
1 Butch_Patterson 2018-07-31
I've said it before, but "to each according to their needs" only works as long as you realise the government isn't going to consider new iPhone XIIIs and the latest capeshit movie in Ultra HD to be "needs"
1 GreatTelephone 2018-07-31
This had to be the most telegraphed shit in all time. How retarded do you have to be to fund this shit?
1 Che_Gueporna 2018-07-31
Nah, apparently it worked well enough for both Regal and Stubbs to imitate it.
I think everyone understood that the price was unsustainable. The gamble was in trying to grow the customer base quickly and then slowly raising prices and cutting costs. Mostly i think what fucked them was a miscalculation of how much each individual user would cost. Basically, normally woth this strategy, you figure out how much users are gonna cost you, then you get funds to give you a runway long enough to add more users and grow the userbase. But here, because they are providing unlimited movies and they have to pay the theater for each viewing that results in a huge cost spike without necessarily having a correaponding user growth.
Man, i could really see this thing written up as a Case Study in HBR someday.
1 GreatTelephone 2018-07-31
It works for a cinema because there little extra cost for them, but nort for a third party that fronts the full cost of a ticket.
1 Che_Gueporna 2018-07-31
Exactly.
The end goal was to get a large enough customer base that instead of starting from scratch the theater chain would just aquire them.
1 watermark02 2018-07-31
Actually I just looked it up, the entire pricing model that the studios charge to theaters is based on a ticket sold. So if they gave away tickets they'd still have to pay the studio each time someone came to see. Really this is something that requires change by the entire industry. It's incredibly stupid of producers to not leverage the non-rivalrous nature of their goods, which allows them to drive up demand by offering unlimited usage at little to no cost to themselves, and instead stubbornly stick to the old model of making people pay per work.
1 watermark02 2018-07-31
I don't think they realized how much people's viewership would increase once given unlimited viewings.
It honestly would be a good business model for theaters, instead of charging two months of Netflix literally to just project a couple of hours of capeshit onto a screen to a mostly empty theater, maybe provide a subscription service and utilize some of that empty space. But no, we're just going to sit here and charge and arm and a leg and wonder loudly why the hell nobody is coming. Moviepass has been a bonanza for theaters, but after it's gone their just going to sit there and scratch their heads.
1 SonyXboxNintendo11 2018-07-31
Nothing is free, nothing is cheap. Everything Reddit loves, dies.
1 watermark02 2018-07-31
Lot's of things are free and cheap.
1 911roofer 2018-07-31
Like your mom. whoo
I hate my life and want to die.
1 PrimoVictoria1944 2018-07-31
Is this connected in anyway to the failure of the Gotti movie?