Seems to be another case of sell below cost and make it up on volume.
Specifically, their strategy seems to have been to sell subscriptions for $10/mo allowing you to watch up to 30 movies per month, yet if you watched even 2, they lost money. They got investors to make up the difference between revenue and costs. Apparently they thought if they got enough subscribers, the theater chains would be forced to negotiate discounts with them. What could go wrong? 1) The money would run out. 2) The theater chains would offer their own subscription services. 3) All of the above. A surprising number of big name companies lose tremendous amounts of money selling below cost, with investors making up the difference. Like Uber. I suspect all the new video streaming services are selling below cost to get market share. Eventually there is always a day of reckoning. Either the investors lose their money and the company fails, or the prices get jacked up. But investors keep throwing cash at these startups, hoping to get in on the next Amazon. From: AF <[email protected]> On Behalf Of Bill Prince Sent: Sunday, September 15, 2019 9:14 AM To: [email protected] Subject: Re: [AFMUG] OT stock for sale Get any Enron? bp <part15sbs{at}gmail{dot}com> On 9/14/2019 7:46 PM, Chuck McCown wrote: Oh, I had some of that too! Sent from my iPhone On Sep 14, 2019, at 6:50 PM, Rex-List Account <mailto:[email protected]> <[email protected]> wrote: Willing to trade for MCI stock? From: AF [mailto:[email protected]] On Behalf Of [email protected] <mailto:[email protected]> Sent: Saturday, September 14, 2019 4:20 PM To: [email protected] <mailto:[email protected]> Subject: [AFMUG] OT stock for sale Anyone want my moviepass stock. Make you a good deal. Virus-free. www.avg.com <http://www.avg.com> -- AF mailing list [email protected] <mailto:[email protected]> http://af.afmug.com/mailman/listinfo/af_af.afmug.com
-- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com
