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Andhrawala Legend Username: Andhrawala Post Number: 63540 Registered: 03-2008 Posted From: 152.51.56.1 Rating: N/A |
and foremost, just based on the monthly subscription fee alone for MoviePass, it's clear that the product is overwhelmingly valuable. Doing the math on the 400,000 subscribers we already know that HMNY has built tells us that the product is already generating $3,980,000 per month. Considering the data that we do have, subscribers have grown by a multiple of 20 in a single month. If that growth rate has continued, the service likely has 8 million users at the moment, bringing in revenue in the amount of $79,600,000 per month. Now, don't get me wrong; the reality is that HMNY didn't likely bring in 7.6 million users over the past month. However, it wouldn't be a far stretch to say that the company did drive around half a million new users over the past month. If that's the case, revenue generation from the $9.95 monthly fee would come in at $8,955,000 per month, and that revenue would likely continue to grow. So, MoviePass is definitely a strong revenue generator. Now, what about profits? Citron seems to think that the company isn't making a penny of profit per user at the price of $9.95 per month. While I highly doubt that this is the case, let's pretend for a moment that it is. Let's pretend that HMNY decided to charge consumers exactly what it pays to allow them to go to the movies on an unlimited basis. Where's the value? Well, the value is in the data. The reality is that one of the most valuable assets on the planet at the moment is data. In fact, the big data industry was worth about $125 billion in the year 2015, and that number has likely grown since. So, let's pretend for a moment that Helios and Matheson makes absolutely nothing off of the monthly fee. What they do have is data on hundreds of thousands and possibly more than a million consumers already. They know what kinds of movies they like due to the use of MoviePass among other data. Perhaps more importantly, they have said that they plan on selling this data to companies like Uber, restaurants, and more! While Citron has undermined the value of the monthly fee associated with MoviePass, it's impossible to undermine the value of data. At the end of the day, big data is big money, and HMNY has the ability to generate a massive amount of it thanks to MoviePass. No Signature |