MoviePass, the braindead idea of the decade

The Mitch Lowe character is pulling a Bain Capital and siphoning off available cash to pay his $7MM salary. It was never going to work... it was never meant to be viable.
 
Clubber Lang said:
I can’t believe a business model based on “the more product you sell, the more money you lose” wasn’t sustainable.

Now they will have to rewrite all the economics books.
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Not really. The airline industry calls that "synergy".
 
Pekelo said:
Here is the main problem:

" HMNY is selling stock constantly just to pay for their subscribers to watch movies. "

MP is a fantastic deal for a frequent moviegoer, not so much for the company, after all cinemas want to get paid somehow. For a non-frequent person like me, I am not going to subscribe because I am not paying 120 bucks for going to the movies 1-2 times a year. So it is a short of Catch 22 of a very bad business idea.

Oh and they got into the movie making business starting with Gotti... :)

https://seekingalpha.com/article/4183215-helios-matheson-meltdown-full-swing

HMNY's (MP's parent company) chart looks like Bitcoin's there was an incredible 1 month runup last year from 3 bucks to 39, and now at 30 cents...

And now they have competition with AMC introducing a similar deal...
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My favorite crash of the .com era was a company that figured that since most people don't mail in rebates they'd sell a bunch of stuff at inflated prices with 100% rebates and make money off everyone who didn't bother to send in the rebate form. Of course they suffered the same adverse selection you described, only the hard core couponers who send in every rebate form are going to pay $40 for a Foreigner CD (it was the 90s) so of course they had a nearly 100% rate of rebate payout and folded after burning through their VC cash and contributing to several hoards that probably exist to this day.
 
At least some people got a nice ride:

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