Comment Re: Marketing Firm (Score 1) 106
Moviepass is not coupons. Every time a MoviePass holder goes to the movies, MoviePass has to pay the theater face-value of the ticket. The movie studio and theater still get the same $11.75 (to split) that they always got for each patron. Then the MoviePass holder spends $15 on popcorn and soda. The theater keeps 100% of this. MoviePass gets nothing. The theaters win with MoviePass because it brings more customers to the theater, and they gave up NOTHING. For MoviePass to have worked, they would have to had worked out a deal, before going live, with either the studio (discount pricing or kick-back) or theater (some cut of the concessions.) But once live, there was no incentive to the theater or studios to work with them since they got all the benefit with no risk.
In a coupon scenario, the store is luring you in with a coupon. They make slightly less on the product of the coupon, but are betting that you will spend additional money that you would otherwise not have spent. Sure, some customers would have bought X at $Y, and with the coupon they are still only going to by X at .75Y, but there are plenty of people who would never have bought X from you at all to make up for the little bit lost.
In a coupon scenario, the store is luring you in with a coupon. They make slightly less on the product of the coupon, but are betting that you will spend additional money that you would otherwise not have spent. Sure, some customers would have bought X at $Y, and with the coupon they are still only going to by X at