Comment: Re:They obviously aren't "modelling" too hard (Score 2) 308
Did you miss the part of RTFA where it talks about movie distribution contracts? They aren't free to set any business model they want. They owe a percentage to the upstream provider based on "ticket sales" -- every person in a seat for every showing -- and are *required* to track that.
Now, I have no idea how they're calculating ticket sales or basing the percentage owed off of what value or any of the various details involved, but public showing of movies requires a separate license and those terms are not something three guys in some small town can just get set at whatever is most convenient for their ideal business situation.
It'd surely be better for consumers if it were an all you can use service, but I bet they are still with its once-per-movie plan actually intending on getting most of their money from refreshments and the like..., because movie theaters really don't make that much off of ticket sales. I don't know the precise details, but for new releases theaters only get like 20-30% or so of the ticket sales... after a month or so, they may get most of it, but they always end up paying.
And remember, a big point of this plan is these local people *do* want to go out and watch new releases and have social events after them with their community, and not have to drive an hour away to do that. So while some people will be going and watching when this theater gets most of the money, a lot will be going when they have to pay most of it to the movie's owner.