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Comment by jedberg | Hacker News Reader

> MoviePass’s business model is controversial. ... It believes that the data it collects on consumer behavior will be so powerful that it will find alternative ways to make money.

They also shakedown local theaters. This happened right near me. They told the theater that they want 50% of the concessions sales. The theater said no, so Moviepass stopped supporting that theater. The theater lost so many concession sales from Moviepass customers going elsewhere that they relented and agreed to their 50% commission.

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I guess the model works. In this case they had enough data to know which theaters are in trouble and could be squeezed. Someone ran the numbers and figured the lost to commission was less than the lost revenue.

And if you have to go back to renegotiate you are no longer in power position to lower that commission.

Interesting. I've heard from the managers at my local indie theaters (in LA) that MoviePass tried to shake them down for concessions, then pulled their theaters from the app when they refused...and then came back hat in hand 2 weeks later offering to take only 15% of concessions if the theaters would take them back.

One did, because MoviePass customers at his theater actually purchased enough extra concessions to justify it. The other did not, because the MoviePass customers at his theater were cheapskates who tried to sneak in all their own food and drinks.

I must be a cheapskate because I never buy anything at the concession. I carry a bottle of water in my bag. I'm there to watch a movie, not eat junk.

I really enjoy butter popcorn, but it's a complete waste of time to bother clarifying the butter and cooking the popcorn for the only flavor of popcorn that taste mediocre when it's not piping hot and that taste terrible the day. If I I'm making popcorn I'm making any other flavor because I'll have also have a snack for the rest of the week.

I exclusively save butter popcorn for the movies.

I went to the movies this past Sunday. Two medium sodas and an Icee was $19.00. Fucking ridiculous.

Do you have any more information on this? They wanted 50% across the board or only from Moviepass patron concession purchases? I'm guessing it's the former, but if the latter, I'm curious how they identify such purchases.

I don't know, I heard it second hand from someone who works for AMC on the Stubs program, who probably heard it through that industry's rumor mill.

> heard it second hand from someone who works for AMC

And no red flags went off?

No, I've known him for 20 years. He wouldn't make stuff up like that.

I only found references that as of May 22nd Moviepass has not even considered doing agreements for concession money.

moviepass's end game seems to be get enough screens that they can convince hollywood to give them a cut of profits from each film under the idea that moviepass not guiding customers to screens would cost them more

If a theater accepts a 50% shakedown on concessions it makes one wonder if all theaters are that desperate to fill seats these days.

It is more that if people have the option of seeing a movie at a theater who accepts MoviePass vs a theater that doesn't accept MoviePass, they are likely to select the former.

So while they might not have been desperate before, being cut off from basically all MoviePass subscribers would not be good for business.

How do they compute their 50%? Do the concessions have to bought using the MoviePass charge card or do they audit the books somehow and take 50% of all concessions?

If it's 50% of everything that sounds like a true shakedown!

I doubt they use the charge card because the main reason they have the ticket verification feature was implemented because users would buy things in addition to their tickets. They basically have you take a picture of your ticket and use mechanical turk to verify.

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