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They could never survive -- their customer demand came from selling $10 movie tickets for $9 -- funded entirely by investor burn.

A sustainable business is one where you sell cinema tickets for $11 having bought them for $10 with the customer choosing you because you've added more than $1 in value for them.

It's a car racing down a hill. The acceleration looks exponential but it's just going to crash.

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I always assumed that MoviePass's endgame was to funnel so many of the ticket sales through them that they could strong-arm the theaters into lowering their ticket prices. They thought if they captured the movie ticket sales market, they could tell the theater "Start allowing us to pay only $2/ticket or we'll remove you from our app and you won't make ANY sales!"

I could be totally talking out my ass, but that's what I always figured. I don't see how else they could be profitable.

It was more like them selling $300 of movie tickets (I'd watch one a day) for $10. Everyone only used them for the arbitrage.

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