The MoviePass Fraud Explained
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Published 2023-02-19
In this video we go over recent fraud charges levelled against the former CEOs of MoviePass and its parent company Helios and Matheson Analytics.
0:00 - 2:13 Intro
2:14 - 5:21 Rise of MoviePass
5:22 - 8:41 Big data
8:42 - 11:58 Collapse of MoviePass
11:59 Why did they do it?
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All Comments (21)
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They were hoping for a gym membership model. Where people sign up optimistically and then forget and just keep paying...
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The moment i heard about the $10 a month plan i told my husband "this cannt last long but we might as well take advantage if it while we can!" We saw a shitload of movies over the next couple of months and the SECOND they started limiting movie options and shit like that we cancelled. I still have the card somewhere lol
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Moviepass - “The dumbest idea to come from the venture capital bubble.” Juicero - Hold my wildly overpriced bag of squished produce
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The plan was to grow so large the studios/theaters would be forced to cut a deal with MoviePass. It didn't work.
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I read reports that people in New York City were using it to buy tickets just to use the theater's bathroom and then leaving right afterwards.
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As someone who worked at a credit card company during the movie pass fiasco. I can say that every customer who tried to cancel followed the instructions and still got charged $40 -$50, depending on the plan.
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Lmao I just assumed moviepass was a plan by the movie theaters to basically eat the cost of the ticket and make a lot more on concessions like popcorn, but I’m 1 minute in now and just realized they had no relation with the movie theaters. Their business model was insanely bad lol
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I like how the news presenter laughs in his face. His plan did not make sense to her
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They built a foundation on blackmailing and extorting movie theaters for cuts of tickets and concessions. Then AMC, Regal, Cinemark, etc all laughed them out and created their own in-house services.
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Working a theater during Movie Pass boom people were expecting us to troubleshoot and solve their movie pass problems as if we were responsible the service.
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Moviepass’s plan always reminded me of the old SNL “First Citywide Change Bank” skit. “How do we make a profit? One word; ‘volume.’”
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He missed the part where moviepass tried to leverage their subs to get movie theaters to give them better prices but all the theaters gave them the finger
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4:02 - management clearly didn't understand the concept of "adverse selection". The product is much more attractive to people who go to the cinema very often, thus they're more likely to acquire those types of consumers.
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I never understood how movie pass would make it out alive. My friend was a big movie buff and would go out to at least 4 movies a month. This was in San Francisco where tickets at the time were average $12 (seems cheap now haha)
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I think the most mind-blowing detail is that the part of this scheme that wasn't outright fraud was them saying. "we're going to track your location and sell your data to third parties." for a legitimate company, that's the scandal, not the business model.
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-People won't over use the service because people don't go to the movies very much. -So people wont watch too many movies even if they are free? -No, and we will violate their privacy by selling their data. -And you expect them to pay you for this service?
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What a summer it was. Mag Mile Chicago, throngs of people at the box office grabbing their MoviePass-paid tickets on the machines, and then when Mission Impossible came out, everyone was having issues because they ran out of money. It was so much fun to help people who enjoyed movies.
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I have NEVER heard of a business changing user passwords to get their paying users to stop using their product. That's hysterical 😂
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I was a member of the earlier version at $40 a month. My break even was at 2-3 movies a month. It was a steal at $40/m for Californians.
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MP was doomed right when AMC Theaters came out with their Stubbs program. AMC knew they had to counter with their own monthly membership or else MP would grow so huge that they would start to attract investors. They didn’t want to make the same mistake Blockbuster did with Netflix.
