Helios and Matheson Analytics Inc (HMNY)

[jross34]

MoviePass has set a cap on how much they can lose each day, but that’s not necessarily smart. Putting a cap that runs out by 4pm PST on a Saturday makes your customers very mad, especially ones that got to the theater at 4:01pm and wasted their time. Those people are going to cancel.

The more people that cancel the less money they have the lower they have to put the cap. It’s a cycle that doesn’t end until there are no subscribers left.

There has to be a balance between cutting off movies and keeping subscribers happy, and unfortunately cutting off movies at 4pm on a saturday is not balanced. It’s a sign that they don’t have enough money to keep subscribers happy and are struggling.