Helios and Matheson Analytics Inc. did not try to obscure the reasons why on Tuesday. MoviePass has become a burden.
MoviePass drew in millions of subscribers, luring them with a $10 monthly rate. But that proved costly. Because MoviePass typically pays theaters the full cost of tickets—$15 or more in big cities—a single movie can put the service in the red. At one point Helios and Matheson had to take out a $5 million emergency loan to pay its payment processors after missed payments resulted in service outages.
Then, last week, the company acknowledged that it is being investigated by the New York Attorney General on allegations that it misled investors.
Moviepass's mistake was choosing the color red for their cards, instead of black.
(Score: 2) by datapharmer on Wednesday October 24 2018, @04:18PM
Hey, it worked for Twitter (so far). “We’re losing money on every unit, but we’ll make it up in volume.” Only difference is unit price - tweets are cheap.