Update! They are at least trying to put a stake in the ground! Here’s Ted with an update from Fax News.
Ted does his best to defend HMNY and points to progress on profitability on subscriptions alone. He goes just short of saying they have hit profit for subs.
As I have mentioned before – Ted is a terrible interview. He constantly says. “You know” and “I think”. And he is loose with hard facts and numbers. This is a CEO in desperate need of media training. I have worked with a lot of C-Level spokespeople. Ted is really terrible at this game.
Ted is so bad in fact, I think it discounts the stock significantly. If Moviepass does survive, and I think it will, I see no chance Ted will survive as CEO. He is just not smart or good enough for the job. The guy is in way over his head, and it shows.
He did slip out one interesting tidbit in the interview saying the yearly sub drop rate was 10% at the flip. He acknowledges Sinemia and offers nothing other than they are a smaller company. Not exactly a reason to buy Moviepass, but a true statement.
Moviepass is hiring a new CMO, and all I can say to that is – Thank the lord! They need some real help with PR, Branding and Messaging. They seriously can’t hire this job fast enough.
Here’s some free advice to whoever lands the role. You are welcome!
Moviepass needs to go on a offensive PR campaign. The company should update their subscription numbers, and should provide update on cash burn and dilution expectations.
Until then, the only PR they can expect will be negative news. Like a beaten down celebrity or politician, who’s career may be shattered by scandal, the company needs to air out ALL of its dirty laundry, and communicate its plans more clearly for rehab.
I talk to people all the time about Moviepass, I am not shy as you can imagine, and the number 1 thing I hear as an objection to trying Moviepass is “I heard they were going out of business”. People generally think the 3 movies a month deal is great. But they don’t want to bother with a company that is dead man walking. It is a death knell for new customer trial, and it is also killing the company’s reputation more broadly.
The only way Moviepass will be able to overcome this is with a full on PR Blitz. They should underpromise and then overdeliver on a sub announcement. I still believe anything north of 2 Million Subs would serve as a relief to investors and would be confidence from the press.
The company should come clean on dilution and expected outstanding shares for end of year. Even if the number is scary large, they should remove the uncertainty.
The company appears to actually be improving execution, with new deals yesterday with Postmates and Draft Kings- both hot companies with young audiences. So I am assuming they are having some luck convincing these companies that they are going to stay in business.
Why not try and convince the general consumer audience of the same thing?!
Look at the news coverage from yesterday- nobody picked up the positive PR on the new deals, all the coverage was on Schramm scam. It was just more reinforcing to consumers that the company is dying.
Good luck to whoever lands the new CMO job. You got your work cut out for you!