Nice work Bob.
The Bloomberg interview from yesterday, Mitch says the 60% reduction is to “cost of goods.” Check out the Bloomberg interview, if you missed it. Same a “cash burn” as referenced in the Cheddar interview.
This is a bit hard to understand as actual, as already an immediate in-place 60% reduction, as I stated in my post to which you here responded.
As for the frequent moviegoer heavy users dropping their MP subscription, no, don’t think this is a correct assumption at all. The majority to most of these frequent heavy users will maintain their MP subscription because it will continued to be a fantastic deal. The discount to heavy user will continue for three movies, and for four and greater number of movies as well. Your sub count therefore should be higher.
MoviePass will also be paying these heavy users $2-$5 to see a movie above the three maximum allowance, if booked through the MP app. Another bonus for the heavy user MP subscriber. MP will obtain this subscriber’s usage and viewing habit data in exchange. This will likely be another cost in the millions monthly for MoviePass.
Other consideration: with the unlimited ‘no brainer’ subscription gone, which prompted mad excitement to sign-up for MoviePass, the three-per-month subscription may engender subscribers to meet that 3/mo. limit and actually use the MP service more that with the always-in-background-unlimited 30/mo.) subscription. MoviePass does not have the stats on subscribers with the just three-per-month limit. MoviePass’s current projections therefore continue somewhat blind and reactionary, and less solidly predictive. The $9.95/month offer will likely counter this impetus to meet the limit, as it’s a low-cost less intrusive ongoing subscription cost. MoviePass may have found the right formula.
How did MoviePass already sign-up and convert 15% of current subscribers to the new subscription if it unrolls on Aug. 15th? It’s their annual subscribers’ annual expiration, with the new plan already offered to them. Let’s see how the renewals go.
If MP is already seeing a 60% reduction in cost of goods it should be near break even right now, and not in 6-9 months as Mitch also stated. Six to nine months is also about when the MP should cycle through the remaining annual subscribers to convert them to the new 3 movies per month maximum subscription plan. I don’t think Mitch has been straight on the 60% reduction in cost of goods as MP “already seeing” this reduction.
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