MoviePass' problem was that their biggest users were stingy as fuck. They would smuggle in their own snack and drink, instead of purchasing from the movie concessions stands.
This might not have been much of an issue (since MoviePass pays full price for the tickets), but they tried to make a play for all of a theater's concessions revenue rather than just the revenue traceable to MoviePass customers.
It's the GroupOn problem. You're allowing people to self-select for being cheap, wanting deals.
The MoviePass system was probably pitched like a health-club membership with the expectation that nobody would ever use it, or like a streaming service people forgot they were subscribing to, but it seems they've captured a base of enthusiasts taking full advantage of the program.
Or at least selecting for the heavy user/expensive customer. I rarely go to the movies for reasons that have nothing to do with ticket prices. They’d love me as a customer but I’d never sign up.
I agree and that's the issue when you compete and differentiate on price in the low market. The customers that subscribe, will do everything possible to save a couple $s.
This might not have been much of an issue (since MoviePass pays full price for the tickets), but they tried to make a play for all of a theater's concessions revenue rather than just the revenue traceable to MoviePass customers.