Every time a member watches a movie, the service pays for that subscriber’s ticket at full price. It loses money for every member that watches two movies a month, and its accountants apparently already warned the company that its system might not be viable in the long run. AMC shares the same sentiment and once called the business model unsustainable. It’s like turning “lead into gold,” the theater chain said in a statement last year.
Seriously? Sounds like Uber’s business model of discounting the rides by giving incentives to the drivers! Is this being subsidized by the Venture capital money and only sustainable by raising the next round of money until you reach a point of not being able to raise the next round?