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MoviePass’ Cautionary Tale

Key insight: Don’t build benefits around who’s not going to use them

If you’re a movie fan who likes a good bargain, you’ve probably watched with interest the saga of MoviePass, the company that last year announced a too-good-to-be-true deal: Pay $9.95 a month and gain the ability to see a first-run movie in a local theater every single day.

The idea: By selling the data acquired through the transactions, the company would be able to pay movie theaters full price for MoviePass customers’ tickets, even with the deep discount.

When first announced, the offering drew skepticism from observers in the film industry and many others, most of whom didn’t see how the model could work. And since then, a lot of evidence has emerged to prove the skeptics right: MoviePass has struggled to maintain a sustainable cash flow and appears on the verge of shutting down. Now, the company looks more like a cautionary tale than a success story.

Please select this link to read the complete article from Associations Now.

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