The stock of Netflix, Inc (NASDAQ:NFLX) closed at $209.31 losing 1.29% in yesterday’s trading session. MoviePass has for over quite some time been scheming on the possible ways in which it can be able to generate money from its more than 1 million subscribers. It is quite a significant number of subscribers and if everything goes according to plan it might end up fetching quite much to help it give new life to most of its business operations. It had taken Netflix a period of more than three years to get to the point of hitting the 1 Million subscriber mark.
According to reports, the company was rather quick in hitting the million subscriber milestone but what contributed much towards that achievement was the lowering of costs which was announced back on Dec. 20 .The rates were taken way up from about $50 to $10 and it is quite evident that most of the consumers have been seeing MoviePass’s value.
A person familiar with the matter stated, “It took Netflix, of which MoviePass Chief Executive Mitch Lowe was a founding executive and which, of course, began life as a DVDs-by-mail service, more than three years to hit the 1 million subscriber mark.. MoviePass had roughly 20,000 subscribers before the price cut, but demand for the service since has been much higher than Chief Executive Mitch Lowe expected.”
However, there has been a lot of concern arising from most of the people in the industry as well as those following closely on the business with quite a significant number being of the opinion that MoviePass’s model is unsustainable. It is a matter that doesn’t add up to quite a significant number of people exactly how a company subsidizing its members’ potentially expensive film-going habits could turn out to be very profitable.
The chief executive of Helios & Matheson Analytics Inc, Ted Farnsworth in an interview he attended recently disclosed that it was all about data. This is one of the companies that take great pride in being the owners of the most significant stakes in MoviePass. There have been numerous concerns emanating from critics who think that the company won’t be in the position to generate money and might end up flaming out.