Subscription service Movie Pass could be operating an unsustainable business model according to Bloomberg, but the CEO says they are going to keep rolling with plans to sell stock and borrow more.
According to the financial site, MoviePass, who is owned by Helios & Matheson Analytics Inc. has about 15 milly in the bank, but are spending about 21 mil each month. As you can imagine that’s not gonna work and AMC CEO Adam Aron agrees
“There’s nothing wrong with subscription programs — they can be quite positive actually if they’re done rationally and intelligently,” AMC CEO Adam Aron told Bloomberg. “But they have to be done at a price that is sustainable.”
Doesn’t sound good for Movie Pass and the 3 million users who pay $9.95 per month for the service and can see one movie per day with no repeats.
More on this story as it develops because this could be over quick after 31% drop in stock price this week.
