Helios and Matheson Analytics Inc (HMNY)

[newztanz]

... 3 movies
3 movies
3 movies

What is it about the plans providing 3 movies will ever equate to a usage rate of anything under 1? The only way MP was able to achieve a usage rate of .7 was through restricting availability. What gives the inclination that usage will average at even 1.0? Right out of the gate the new subscriber is going to "try out" their new service at the earliest opportunity. The "gym membership" theory only works for guilt based services where there is a motivation based emotion that fails to go but is reluctant to quit based upon good intention. Movies is a service that people use. Everyone that buys in does so with the full intention of using every session allowed. With the provided services set at 3 and the break even price set at the cost of 1 session. You are talking about the consumer wasting 66% of their potential opportunity. Im sorry to be so stern (everyone has been so polite today) but honestly, wake up. Nobody is thinking "maybe I use it, maybe I don't." It's a discount package deal providing 3 for 1. That's what those that bother to sign up for the service are going to target, 3 movies. The new heavy user is a 3 movie a month user. A medium user, 2 movies/mo. And a low user, 1 movie/mo. All of these will leave MP at a loss. Even the 1 movie/mo because of overhead and cost of operation. The only consumer that is profitable is the user that utilizes the service under the lowest usage range. There is just no way to mathematicly range cost against average use. MP has targeted the avg movie goer, which they claim see 4 movies a year. They hope to increase that movie goers movie visits to 8. Why then are they promoting services that range to 36? Targeting the wrong crowd. This model is a fail. Maybe it could have more of a chance e if there was a supplement to the income. But we haven't seen anything. I used to think that the indi film thing gave substance, nope it doesn't. The ratios are all wrong and just don't work. If maybe we had a retail situation with sales people pushing the product in your face impulse and pressure could aquire potential non users to buy. Bit this is a passive product and the only people buying are people who use and intend to use. StockItOut, sorry to CallYouOut... hehe. But seriously let figure out the .7 ratio and use you because your the only sub holder on here (sad fact, that tells a lot by the way. Only sub on here). 8.4 movies a year equals .7 usage rate. You mean to tell me that you are going to pay $114 for $75 worth of usage and stay a customer? What's your personal usage? Ever go a month without seeing a movie? I doubt you or any other subscriber would be a subscriber if you ever thought for one minute you couldn't on your own free will get to the 3 per month. Which was the only way MP was able to get usage down to .7, by restricting free will of it customers. Which is why we have "significant" subscriber loss. One last question, are you going to renew? And don't say it depends on if they change availability or not. Are you going to stay a subscriber if MP continues to do what they have to do to keep usage down below 1.0?