I read this great post from Eddy Yoon titled ‘What MoviePass Can Teach Us About the Future of Subscription Businesses‘.
If you are a founder or investor just read it.
I shared the article With Justin (Stocktwits COO) with a note that Netflix will get into this business eventually by buying and or building their own theatres.
He added…Agree. There are tons of ways and tiers where you could grab margin – hot movies, seat selection, even the food. For Netflix it’s a way to be in the same game but charge up for scarcity you can’t do on the web.
I imagine Amazon could/should do the same.
There are not just lessons for founders in MoviePass, but also investors in the stock (the bagholders).
Investing is hard. Investing in businesses with awful financial models just makes it harder.
Being a good storyteller is important, but it is just as important to differentiate between a good story and a good investment.
If you chased MoviePass the stock and/or bought the endless dip, you now have a story.
It is a painful story and lesson, but one that every great investor can tell and has been taught on the road to being great.
Also published on Medium.