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Busy and going broke

Why MoviePass's co-founder wanted the sign-ups switched off · 13 min

A hundred thousand people signed up in two days, and MoviePass's co-founder wanted it switched off. Three million customers later, it collapsed. Meanwhile, a trial with small-shop owners in Santo Domingo found a fix simpler than any accounting course. The one number that tells you whether you're getting richer or just busier, and how to see it.

Takeaways

  • MoviePass charged about $10 a month while paying cinemas full price for every ticket, when the average US ticket cost about $9; it grew to around three million subscribers and still collapsed.
  • The number that decides survival is what's left from one sale after that sale's own costs. If it's negative, growing makes you poorer faster.
  • In a randomised trial with 1,193 small-business clients of a bank in Santo Domingo, simple rules (two drawers, an IOU note, a fixed pay for yourself) improved money practices where a standard accounting course didn't. This week: one number, two drawers.

Chapters

  1. Turn it off0:17
  2. The biggest cinema with no screens1:49
  3. What's left from one sale3:48
  4. Two busy stalls6:46
  5. Hear it done8:19
  6. Build yours9:42
  7. The answer11:42

References

  1. Drexler, A., Fischer, G., & Schoar, A. — Keeping it simple: Financial literacy and rules of thumb(2014)
  2. Innovations for Poverty Action — Keeping it Simple: Financial Literacy and Rules of Thumb in the Dominican Republic(2014)
  3. McKenzie, D. — Small business training to improve management practices in developing countries: re-assessing the evidence for 'training doesn't work'(2021)
  4. Time — MoviePass co-founder Stacy Spikes is relaunching the company(2022)
  5. Slate — MoviePass is back. New (old) CEO Stacy Spikes explains what the hell he's thinking.(2023)
  6. CBS News — MoviePass lights are dimming as losses and subscribers mount(2018)
  7. Variety — MoviePass claims momentum despite losing $126.6 million last quarter(2018)
  8. Variety — MoviePass coming back? Stacy Spikes buys assets, eyes 2022 relaunch(2021)
  9. Deadline — Average movie ticket price last year hits an all-time high of $8.97(2018)
  10. Wikipedia — MoviePass(2026)