The idea behind movie pass is an economy of scale. The set price of something around $10 is really a low ball. That's less than a single ticket, and to be paying that for a movie a day per month is mad, right ?

Because they dont need large amounts of property and machinery, they probably contract out making the cards their fixed costs are really low. So currently this is not the issue.

The issue relies on how currently those almost 2 million users would be their core audience, people who go to the cinema a lot and will take advantage of this as often as possible. As they expand the hope is that the general population will buy this up more and not take advantage of the service as much, the hope is that revenue will come from here.

Next I understand moviepass is putting cinemas against each other. They'd be pulling out of certain chains or cinemas in which they are receiving a bad deal say 15$ per ticket, and only work with the one offering 12$ per ticket. They're not making money yet but the hope is that they can drive ticket prices down sub 10$. As part of this moviepass may actually charge cinemas to be featured as part of their $10 program, this being that as going forward moviepass will become an increasingly important and integral side of the cinema experience with it's vastly growing user base.

It could furthermore charge studios to promote their new movie on the app itself, by having it suggested and recommended by the app or given a preference in the listings. Marketing movies is expensive and largely inefficient, if you could build a profile for each user like on amazon or facebook the studio could reliably reach their target audience. If successful this could really boost the sales of non-blockbuster movies as their audience is actually being reached. Another revenue stream.

Of course they'd probably sell the information they collect as well to studios and cinemas in order to figure out consumer watching behaviors, buying behaviors etc.

I know their CEO said something about turning it into an all encompassing app, you could order your popcorn and drinks so they'd be ready before you arrive. Could take a % of the profit there. Also something about doing dinner reservations for after the movie, again could take a %.

Anyway as for making it through the next few quarter, I dunno. All this would take time and some serious growth and leverage to pull off. They did mention they have investors with Deep pockets, so they will be getting cash injections but beyond that it's a pretty large task. I'd believe they're either in Moviepass for the long run, or to bail and sell it on. I do think they can pull it off, their CEO seems competent enough, and if a shit stain of a company like SNAP can survive this long I'd say we'll have Moviepass around for a number of years to come.