Model Update Post CEO – Ted Farnsworth Fox Business Interview

In Today’s Fox Business Interview CEO Ted Farnsworth claimed that the Moviepass subscription businesses is now break even.

Specific numbers Farnsworth claimed in the interview.

  • Utilization Rate is now at .9
  • Approximately 10% of yearly subs quitting.
  • Did not give monthly sub retention rate.

If you believe Ted’s #’s – and the prior numbers given for non subscription revenue – it does appear that the company is very close to breakeven. And on the sub basis alone, they should be showing a positive gross margin. I used $11 for a average ticket price. Which is higher than MPAA estimates.

I dropped the subs to 2.6M and built back up from there.

Here’s the model. Things are looking pretty good!