>Sure, you get some binge subscribers who exploit the system, but they're not enough to bring down the entire enterprise.
Especially for movie theaters, where the marginal cost of additional filmgoers isn't as high.
If I watch a second Netflix movie, Netflix has to spend 2x as much on bandwidth to serve it to me.
If I theater hop, the theater doesn't really have to spend anything more. The only cost to the theater is the opportunity cost of me not paying to see a movie I otherwise would have paid to see.
In other words, as long as the MoviePass subscription cost is higher than the opportunity cost of losing the average moviegoer's ticket revenue, then everyone wins. In fact, the theater probably really, REALLY wins because the more often I'm at the theater, the more often I have a chance to buy concessions.
Obviously, things can change with Network Neutrality repeal, but: exactly whom are they paying for that incremental uptick in bandwidth usage (i.e. on the margin)?
Especially for movie theaters, where the marginal cost of additional filmgoers isn't as high.
If I watch a second Netflix movie, Netflix has to spend 2x as much on bandwidth to serve it to me.
If I theater hop, the theater doesn't really have to spend anything more. The only cost to the theater is the opportunity cost of me not paying to see a movie I otherwise would have paid to see.
In other words, as long as the MoviePass subscription cost is higher than the opportunity cost of losing the average moviegoer's ticket revenue, then everyone wins. In fact, the theater probably really, REALLY wins because the more often I'm at the theater, the more often I have a chance to buy concessions.