Apparently, MoviePass is the latest fad that financially illiterate millennials are into. Which is ironic, because the people that are signing up for MoviePass are the same people that claim to care about the movie and movie theater industry.
“AMC also believes that promising essentially unlimited first-run movie content at a price below $10 per month over time will not provide sufficient revenue to operate quality theatres nor will it produce enough income to provide film makers with sufficient incentive to make great new movies.”
http://investor.amctheatres.com/file/Index?KeyFile=389925821
“This influx of capital has allowed MoviePass to continue to subsidize the cost of this subscription to the benefit of pass holders, though obviously not profitability at this point. It’s operating in the red while it focuses on growing subscribers.”
https://finance.yahoo.com/news/moviepass-drops-pricing-under-7-165817738.html
“About $5 million would go towards acquiring the remaining interest in unprofitable MoviePass, a movie theater subscription founded by Netflix co-founder Mitch Lowe.”
Personally, as a non-aficionado, I think it’s funny.