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WildSpace (3)
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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!
Ill go to see Star Wars movies multiple times by myself. Sin City I saw alone...course even with that I ended up sitting next to some dude I started talking to in line. So definitely with people. That way you have someone to talk about the movie with right afterwards.
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