Replies to post #33359 on Helios and Matheson Analytics Inc (HMNY)

[naturalborninvestor]

On the contrary, I'd argue even 1.5M - 2M users would still be too many. The current business strategy has failed, because moviepass, for some reason, is not seen as a valued provider of traffic by the big threatre chains to which it'd be worth paying a 15% - 20% referral fee per ticket. If chains did that, moviepass would look much different today. Instead, AMC & Co have established competing services and the negotiation power of moviepass has rather declined over the past few months due to the desastrous financial standing.

So, business strategy must change. The mainstream movie goer is not a good choice for moviepass because it will never be able to provide mass access to blockbuster movies at full price per ticket. Nor are the mainstream theatre chains a good choice. Moviepass's future must be a totally different target group: the cineaste, the film buff, the independent, art film lover. Movies that are rarely booked out, screened in smaller, independent cinemas, maybe even in foreign languages. If they can design a subscription plan for those users and become the marketing arm of those independent cinemas, moviepass has a chance to survive. I see moviepass at 0.5M-1M users in that scenario. But profitable!