What the Postmates Deal Means For Moviepass

Frankly I am mixed in my reaction to the Postmates deal.

On the plus side. It is a good brand that young people like a lot. I have 2 kids college age, they both use Postmates regularly, they like the service and recommend it. So there is a decent brand halo here, particularly for young audiences.

The deal means that HMNY and Moviepass are not exactly planning on dying anytime soon, and apparently they are able to convince other companies of this notion. Postmates would not bother doing a deal with Moviepass at all if they thought they were going to die in the immediate future.

I like that the company is looking to increase revenue from non subscription sources. At least they are executing on something here.

The new message of creating a “club” where subscribers receive different valuable offers is not a terrible idea. It is one I have suggested before here on this blog. Moviepass has a uniqueness to it that some easily forget. The location based debit card charge feature is something that can be lit up for things other than movies. Hopefully Moviepass can find partners who want to take advantage of that technology along with Moviepass’s audience size. Postmates could partner with local restaurants and other small businesses to do just that.

On the downside.

The odd thing in the messaging on this deal is Mitch has talked about ending the cocooning phase, and rallying around a “night out” concept for months now. Bit, Postmates is the ultimate hermit service. You can get about anything delivered right to your door. Mitch tried to acknowledge that in the PR with a hand wave to “we know our subscribers have at least one streaming service”. But that is a pretty lame data point. Who doesn’t have at least one streaming service these days?

Overall the news is positive. And near term death seems further and further away.

This does nothing to negate many other possible deals in the future, of anything it helps, which is also positive. Deals take time and build momentum if they prove out to be positive for both companies. Let’s hope for the best here.