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6,337 Views | 36 Replies | Last: 5 yr ago by IrishTxAggie
Ag13
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AG
Anyone playing this stock now that it's basically a penny stock? I'm a big fan of Movie Pass but I cannot wrap my head around how it's going to survive long enough financially to make their plans come to fruition. I am a fan of their business plan though - especially investing in stakes of movies. Could be a real winner, just ask Netflix.

From the consumer standpoint, I would be happy to pay $25-$30 a month for what I get out of Movie Pass. I am sure a price increase will come eventually.

Stock closed at $.4075 today. Down 93.54% YTD.
Guitarsoup
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MoviePass' plan was to get the big theater chains to give them a discount on tickets and a cut of concessions. When all turned them down, they tried to play hardball with AMC but delisting their top theaters. That only passed off the chains more.

I like getting free movies but they are close to out of cash and whole they say they have credit lines, they really don't have a great source to get solvent. They are going to be substantially in the red by the end of summer movie season assuming they don't close

Bad play.
khkman22
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AG
Guitarsoup said:

MoviePass' plan was to get the big theater chains to give them a discount on tickets and a cut of concessions. When all turned them down, they tried to play hardball with AMC but delisting their top theaters. That only passed off the chains more.

I like getting free movies but they are close to out of cash and whole they say they have credit lines, they really don't have a great source to get solvent. They are going to be substantially in the red by the end of summer movie season assuming they don't close

Bad play.
Don't know anything about Movie Pass, but if that is true, I wouldn't want any part of that company. Why would management think they could strongarm the theaters? If I were the theaters, I'd just start the same type of plan and not have to share concessions. Even if there are those that overuse their pass to where the theater loses some money on tickets, they'd still probably make it up in concessions.
Guitarsoup
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AG
While not unlimited, Cinemark had created their own subscription service. I'm a member of that as well as MoviePass.

There is also the subscription service Sinema. Again, not unlimited, but is actually profitable and includes IMAX and 3D.

MP's pitch was that because their customers feel like they are getting free movies, they will spend more on concessions. And while they are probably right, the theater isn't going to give them the 20% they asked for. Plus since you don't use MoviePass to buy concessions, there is no hard evidence.

All the major chains have their own app, so they really don't need MoviePass for anything.

MP's most valuable asset would be to sell customer data to movie production colonies so they can tailor the experience to what customers actually want and tailor the marketing to the proper demographic. This is how Netflix makes all their decisions because they keep data on everything including when you stop watching in a program. However, people three a fit and MP said they wouldn't do that months ago.

Without changing their service completely and radically, I think MP will fail by Thanksgiving.
aggiehunter3
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AG
A coworker got me into Moviepass, as he had purchased one and it seemed like a cool concept. I made a small investment around $5 and rode it to a double and sold all - great investment. I then got greedy and bought double the position at $3 on the way down...and I'm still holding - BAD investment. It's a hero or zero play at this point and each day looking more like a zero play.
Ulrich
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Guitarsoup said:

There is also the subscription service Sinema. Again, not unlimited, but is actually profitable and includes IMAX and 3D.

I assume this is not what it sounds like?
Cancelled
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I understood that MP's play was to sell customer data. They would track where you went before and after the movie.
94chem
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Ulrich said:

Guitarsoup said:

There is also the subscription service Sinema. Again, not unlimited, but is actually profitable and includes IMAX and 3D.

I assume this is not what it sounds like?


Maybe it is, but it's not one of those subscriptions that you admit having.
Ag13
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Big for sustainability

Quote:

Movie pass press release

A Message To Our Members:

The revolution is happening now, and it is all thanks to you. In less than a year, three million pioneers joined us on our journey to see more great movies at an unbeatable price. And we want to thank you, our community, for your steadfast support of our company and growth.

In the spirit of innovation and growth, we are now announcing the next phase in the evolution of our product: Demand Pricing.

In the coming weeks, we will roll out three different upgrades to our base $9.95 service for our members.

Bring-A-Guest: MoviePass members will be able to purchase extra tickets to a showing of a movie right through the MoviePass app, so that you can seamlessly reserve seats for you and your friends (at e-ticketing partner theaters) to watch a film even if they aren't MoviePass subscribers. As a benefit, if your friend signs up for MoviePass within 24 hours, we'll refund the entire cost of the ticket!

Peak Pricing: MoviePass is committed to maintaining our low monthly price as we continue to grow rapidly. Rather than raise our prices or limit viewings, our plan has been to develop a new variable pricing system based on the demand for particular showtimes. Under this plan, if the combination of demand for a title, date or part of day is higher, subscribers may be asked to pay a small additional fee depending on the level of demand. You can avoid this peak surcharge by choosing an alternative date or film. We will also soon give subscribers one "peak pass" per month, allowing them to waive a Peak Price surcharge once per month. Annual and Quarterly subscribers will not incur peak pricing until their current subscription term ends and then renews.

Premium Showings: MoviePass members on any plan will soon be able to access RealD 3D, IMAX 2D or 3D, and other Premium Large Format showings of any film for an additional upgrade fee.

These features are being tested currently and will slowly roll out to all our members over the next several weeks.

Our aim is to create the most flexible and cost-efficient product, so that we don't have to simply raise the price on the subscription. We appreciate your flexibility as we evolve our service to keep MoviePass at a low cost. We can't express how much we value all of you for being part of that vision.

Thank you.

Sincerely,
The MoviePass Team
leoj
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AG
Would love to take some time and read up on some number crunching on their cash burn and access to additional capital. I think they have made some good changes to the program this year.
Guitarsoup
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leoj said:

Would love to take some time and read up on some number crunching on their cash burn and access to additional capital. I think they have made some good changes to the program this year.
They have made some good and some bad.

They have also invested in two movies, Gotti and American Animals. In two weeks, Gotti has about $3.2mm in ticket sales and in four weeks, American Animals has just 1.4mm. Gotti also has the distinction of a 0% on Rotten Tomatoes.

Also, AMC and Alamo Drafthouse have both announced their own subscription services in the last week.
JustPanda
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AG
Filed with SEC to raise another 1.2B. Burning 25-45MM a month with 18.7MM in cash and 30.3MM in AR. Combine that with AMC's $20/month pass and the fact MoviePass is still net negative on every pass sold, and it's hard to see them staying afloat much longer.
Guitarsoup
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AG
Stock now at 0.15.

To raise additional money and keep people from using their service, they are instituting Surge Pricing. Only they have no access to whether most movies are actually having a surge. They are just adding it to full-fare movies that have been out 2 weeks or less.

A friend paid the surge price increase and was the only person in the theater. Going by the MP Facebook groups, their subscriber base is dropping out, especially people that can get the AMC price deal.
Guitarsoup
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AG
Now trading at $.093 and talking about a 1-to-10 or 1-to-250 reverse split.


Their recent changes with surge pricing have really upset customers and many have canceled subscriptions and moved to AMC's new A-List or Sinemia's SummerSale discounts.
Guitarsoup
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AG
They are reverse splitting 250-to-1 at today's close.
Ag13
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AG
Down 40% today after the reverse split. Ouch
leoj
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AG
Lol wow. Guess I need to use my card while I can
Guitarsoup
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leoj said:

Lol wow. Guess I need to use my card while I can
I cancelled mine due to their BS surge pricing.

MP says it is based on demand, but it clearly isn't. Surge price on a 10:20pm kid's movie on a Sunday night?



Log into theater website and see that not a single ticket as been sold:



I joined Sinemia instead.

Referral link for $5 credit (I get one, too)

https://www.sinemia.com/R/XY2VKR

Their current limited time summer special is a lot better deal than MoviePass, assuming you don't see a bazillion movies a month. I would rather see 3 IMAX blockbuster movies per month rather than 20 movies I didn't really care about seeing in the theater.

leoj
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AG
I haven't tried to use it since then but I've heard it's bs and they are just doing it to the top movies. I'll look into that.
Ag13
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AG
https://www.businessinsider.com/moviepass-outage-caused-by-company-temporarily-running-out-of-cash-2018-7

I think it's over for Movie Pass.
Guitarsoup
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AG
I'm in some movie pass Facebook groups and the number of people that lost thousands or teens of thousands of dollars on the stock because they liked the service is astounding.

The people that bought the stock thinking it helped the company somehow is even more astounding.
IrishTxAggie
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AG
Cancelled mine last week. It will be gone before the end of the year.
JustPanda
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AG
+1
Ag13
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I cannot understand why they never increased the price of the service to make it more manageable. Even rising to just $15 would have been beneficial.
IrishTxAggie
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Ag13 said:

I cannot understand why they never increased the price of the service to make it more manageable. Even rising to just $15 would have been beneficial.
They took the Planet Fitness approach (cheap enough to not really notice the recurring charge and keep it because you 'might' use it), but people actually used their service more often than people use Planet Fitness'...
badharambe
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AG
So true. Everyone that I know of tha has the card uses it more than once per month.
IrishTxAggie
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AG
Bankrupt by the end of August.

As I mentioned, I cancelled mine recently. My pass was paid up until 8/8. I hopped on the app to see if there was anything to kill some time today. Every movie has a surge on the app in Houston and several movies aren't even available. This thing is imploding. It's spiraling the toilet.
Guitarsoup
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IrishTxAggie said:

Bankrupt by the end of August.

As I mentioned, I cancelled mine recently. My pass was paid up until 8/8. I hopped on the app to see if there was anything to kill some time today. Every movie has a surge on the app in Houston and several movies aren't even available. This thing is imploding. It's spiraling the toilet.


Many people are now reporting surge prices higher than the actual movie ticket. It's over
IrishTxAggie
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A quick look at Twitter shows it's across the country.

AMC A-List seems to have a shot since it's within their own system.
IrishTxAggie
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MoviePass just sent out their death email. I just got it and it read like "we're ****ed and in over our heads, but we still want cash to stay afloat."
leoj
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Awesome. I'll have to cancel then I guess. Really wish it had worked out, it was cool to use and get to see a bunch of movies I wouldn't normally see in theaters.
Guitarsoup
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HMNY closed today at $.50. They were about $.89 before doing the 250:1 reverse split a week ago.
Señor Chang
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The day before the reverse split it was trading around .07-.08
Ag13
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AG
IrishTxAggie said:

A quick look at Twitter shows it's across the country.

AMC A-List seems to have a shot since it's within their own system.


Except that AMC is going to cancel their subscription service when the competition dies.
IrishTxAggie
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AG
Doubt it. CineMark will come out with something too. The theaters don't make the lion's share on ticket sales. They make it on concessions. It will hurt the studios bottom line more than the theaters. MoviePass introduces the model, AMC is just making it better and it will get more people into the theaters.
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