Quote:
Originally Posted by sureLoss
Some interesting tidbits in this article:
http://www.cbc.ca/news/business/movi...flix-1.4611033
- There doesn't appear to be any partnerships or relationships with the theaters themselves. Meaning Sinemia is paying the full cost of the tickets to the theaters?
- "In explaining the company's business model, Oguz said the company hopes to supplement the revenue from its ticket plans with advertising on its website, corporate sales and eventually, deals with theatre companies to sell popcorn and other concessions within its app." - doesn't sound like a rock solid business plan to me especially considering they don't even have ads on their website yet
- They are being sued for patent infringement in the US.
With the above I would be very hesitant to commit long term to them as I am not sure how long the company will stay afloat. It almost seems ponzi scheme-ish.
If you do try it out on a no commitment basis and manage to get a few months out of it, it should pay for itself.
edit: unless they are banking on most subscribers not using all their tickets or are hoping to negotiate deals with the theatres in the near future, I am not sure how this business model will work at all |
The same as every tech company is using
Acquire a monopoly of users, then force a company or customer to pay more/provide service for less.
In this case if everyone is buying movies through them, any theater that won't participate and sell them cheaper tickets would go broke, as they wouldn't offer that theater.
The question is just how deep their pockets are and can they acquire enough members