[Podcast] AMC Analysis

In the short-term, it won't make a profit. Theyll have to raise more capital thru private equity. Private equity investors must be convinced that theyre growing subs fast enough to justify their burn-rate. The long-term play, I hypothesis, is that once MoviePass gets its subnumbers up, it can raise prices and exploit movie theatre chains. The whole thing probably wont work, but in the mean time, it's still a threat to AMC because even if it doesnt work in the long-term, in the short-term it may apply downward pressure on ticket prices.

It may also be a boon to AMC. People going to the movie more often means more high-margin concessions. (Concessions are about 90% gross profit.) Perhaps a lucrative deal does get made between AMC and MoviePass, I havent given that option much though.

Thanks for the reply!