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Glen DePalma

You have to be within 100 yards of a theater to book a ticket to movie pass. This brings into question the person who actually books tickets but doesn't use them. Either way they are a huge loser.

Glen DePalma

I don't think this is as bad as Groupon. Movies make a lot off concessions for one. Plus if I go to an extra movie with the pass that I would not have gone to otherwise, assuming the movie is not sold out, the theater doesn't lose any money.

Kaiser

GdP: At the moment, the theaters are doing fine since they are getting fully reimbursed. But if the theaters don't chip in, Moviepass can't make money. The concessions angle is interesting: if the profits from concessions are enough, we should see theaters run targeted campaigns to get you to see a movie for free, hoping you'll then spend on concessions. That was a Groupon argument too. But here's what the restaurant owners discovered: the type of people who use coupons are really cheap, and would try to not spend an extra dime above the coupon amount! One of the key factors to consider here is that the dealseekers are not your average customer.

Ken

The problem with Groupon is that it worked in a way that didn't make commercial sense. Many restaurants are booked out on a Friday and Saturday so there is no point in offering cheap meals then. What makes sense is to offer cheap meals on say a Tuesday when they have few customers. The way that restaurants run is that the fixed costs are all paid for by the busy days, so they don't have to be paid for by customers on a week night and they account for about half the price of the meal.

Of course, if it works it will give the landlord an excuse to push up rents, as they see the restaurant being more heavily used and expect that profits are higher.

Kyle Crocco

I think the plan is also to make money off the user movie data for watching movies.

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