How does this deal strike you: pay just $9.95 a month and go to all the movies you want. Does that sound too good to be true? Well, maybe it is. That’s the deal Moviepass offers and it’s quite popular.
The service picked up almost 2 million subscribers in just under a year. But on Wednesday, Moviepass’ parent company Helios and Matheson Analytics saw its stock fall 40 percent after it disclosed that it was over $150 million in the hole. What does this mean for the movie-going public? Digital savant Omar Gallaga of the Austin American-Statesman’s 512 Tech says what made MoviePass possible was the promise of access to a lot of data about the people who use the service, including what they do before, during and after going to the movies.
What you‘ll hear in this segment:
–Why 2 million users aren’t enough to make MoviePass profitable
–Whether other companies are likely to adopt a MoviePass-like model
–What could save MoviePass