Moviepass competitor Sinemia Tries Movie-Subscription
Peter Sayles |
We had to shake our heads.
Grant and I (Connor) thought the world would learn.
Helios & Matheson (HMNY) bought a majority stake in MoviePass back in August 2017.
Since then HMNY’s shares have lost 99.9% of their value.
Yet HMNY continues to double down on a failing business idea. Investors continue to punish them into oblivion. HMNY’s executives think they’ll win over investors hearts with another reverse stock split – essentially a last ditch effort that reduces the number of shares outstanding and inflates the stock price.
We can’t understand who still holds HMNY after this debauchery. We certainly don’t feel bad for anyone who either continues to hold. Or didn’t sell at least with substantial losses (we considered a 50% loss a win for those who bought to begin with).
After all, MoviePass is classified as one of our Stocks (Businesses) That Are Guaranteed To Lose You Money Long Term.
Yet we’re seeing someone else think selling an unlimited movie-pass subscription will work out.
Sinemia is offering unlimited movie-passes for $30/month. Rifat calls it a “sustainable business model.”
Want to know what we think? Get outta here (in Grant’s Boston accent).
MoviePass has downgraded customers’ benefits at least a half dozen times. It’s now limiting users to just six movies per day. Sounds good except it’s limited access to many films and is “starting with a barring of major blockbusters and moving toward limiting selection generally.”
Who is buying a MoviePass subscription when almost everything is barred in the first place?
Now Oguz thinks he can make the economics work at $30/month? We’ll laugh that business model to bankruptcy court.
A couple buyers on the extreme side of the bell curve can single-handedly make Sinemia regret its decision.
The only thing we can say is: if Sinemia goes public, we pray we’ll be able to short it before everyone gets in. Because it’s a guaranteed lock Sinemia won’t be able survive at unlimited movies to customers for $30/month.