This Just In...

Discussion in 'Movies' started by DustinDavis, Feb 27, 2019.

  1. DustinDavis

    DustinDavis Well-Known Member

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    ...MoviePass had a bad business plan.

    MoviePass Says Shareholders Were Told of Risks of Failure

    It's so hard for me to believe there were investors in this. From the first time I heard about the business plan, success of which apparently hinged on some sort of advertising deus ex machina which was never going to arrive, or on inventory breakage which it seemed clear would also never materialize based on comments from the customer base about their value computations, all I could think was that business plan sounds even worse than this one:

    First CityWide Change Bank

    I don't understand how people are puzzled by this outcome.
     
  2. Carl V

    Carl V Bronze Member Donor Top Poster

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    Hope springs eternal. Greed and graft are with us always. Common sense takes s holiday.
     
  3. CJ

    CJ Bronze Member Admin Top Poster

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    They were trying to follow the gym model where people pay but rarely use the service. Then on the back end they were going to sell all your data. The problem is the gym involves a whole lot of human psychology about aspiration that doesn't apply to going to the movies so they didn't get a bunch of resolution breakers, they got a bunch of hardcore movie buffs.
     
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  4. DustinDavis

    DustinDavis Well-Known Member

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    That is an astute observation which leaves me all the more puzzled not about the investors but the business owners. It appears to demonstrate such a fundamentally poor understanding of the customer. I wonder what market data or other inputs told them something other than what you and I intuitively see here, such that they were ever able to rationalize to the contrary.
     
  5. CJ

    CJ Bronze Member Admin Top Poster

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    Don't eliminate the possibility that the primary / direct investors will walk away enriched after this and don't care if it failed.
     
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  6. DustinDavis

    DustinDavis Well-Known Member

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  7. Mike B

    Mike B Well-Known Member Donor Top Poster

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    That sounds criminal eh? Throw his ass in jail!
     
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  8. CJ

    CJ Bronze Member Admin Top Poster

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    Yeah, that's fraud.
     
  9. DustinDavis

    DustinDavis Well-Known Member

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    Officially dead.

    Why MoviePass really failed

    And yeah, I think CJ is probably right. The comedy here is this company's spectacularly specious business plan. The tragedy is probably a lot of normal people who lost their asses riding this to zero.
     

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