Ted Farnsworth, the head of MoviePass's parent company, talked us through their controversial business model and explained what the app does with your data. https://t.co/7gO5ayWirw— VICE (@VICE) June 12, 2018
Moviepass can be puzzling for people, but it's a lesson in tech disruption. People pay 10 or so bucks for a ticket and now can get a Moviepass sub for that much to watch one movie a day all month (the original offer of 9.95 a month is back.) So how exactly does all that work?
Sometimes Moviepass gets discounted tickets because of the deal with cinemas. The company is still losing enough money even the stock market has become pessimistic.
But people at the top aren't worried. The main concern is the number of subscribers and data collected pertaining to films. They sell the info about trends, do predictive analysis on which movies will do well, and target different movies to its base. Once Moviepass gets the subscriber number it wants, things will turn around, they say.
"The lesson learned is that data has become such a hot topic in today’s world, with Facebook and everything else going on. And we do not sell our data to anyone, and don’t plan on selling it to anyone. But it really shows you how sensitive of a subject it is.
Then what kind of data are they selling?? "Take yourself out of there—your name, your credit card information, we don’t need any of that stuff. What we want to know is what are your viewing habits, and then we can give you a better experience from MoviePass by recommending movies that you would like. What we don’t want to do is get into the position where if we’re pushing one of our movies, and you have no interest whatsoever in comedy, we don’t want to bug you about it. "
Ted talks a little more about resistance from cinemas, saying that AMC didn't want to but realized they were coming at a million miles an hour and paying 100 percent of the ticket. Once they [Moviepass] hits 5 mil subscribers, they say they will be cash flow positive. Currently, they are at 3 mil and hope to hit that by year's end.