So the only crazy part of this plan is the $10 a month. Cineworld in the UK have the Unlimited card for years which is effectively the same[1], but costs £17.90 a month (~$23).
Difference is, "any theater in the U.S. that accepts debit cards". If you're unfortunate enough to only have a Vue around, your Cineworld pass won't do much.
Yes, that's a fair point, and they are paying the theatre the full price of the ticket. I wonder if their plan is to control the supply of visitors to the cinema at a loss, then negotiate a profitable way to continue when the cinemas fear losing the revenue.
I mean, the article flat out says they're subsidizing the costs and then selling your viewing habit data to make the profit.