Sep 7, 2017 By: yunews
Dr. S. Abraham Ravid, professor of finance at , was interviewed on , a program produced by Minnesota Public Radio and aired on National Public Radio. He spoke about a new subscription movie ticket service, called MoviePass, that allows a person to see an unlimited number of movies at a local theater for about the same price as a Spotify or Netflix subscription.
Ravid said that 鈥渋t just seems mind-boggling that they would make any money at $10.鈥 MoviePass counters that it will make money by expanding in rural areas, where ticket prices can cost anywhere from a third to a quarter of what they cost in a major urban area. It also argues that multiple visits to the movie theater will help the theaters鈥 bottom lines, a point that Ravid conceded: 鈥淭he theaters actually make a lot of their money, if not most of it, at least initially, from the concessions.鈥
But until MoviePass can also get a cut of those concession profits, which is one of its corporate goals, Ravid said that they only way MoviePass can succeed is through large, long-term investments.
