Two days after MoviePass announced the return of the company’s unlimited ticket plan, Ted Farnsworth, CEO of its parent company Helios and Matheson Analytics, sat down with TechCrunch to offer insight into the state of the beleaguered service.
According to the executive, MoviePass Uncapped is already seeing positive results. While he didn’t share concrete numbers, he says that sign-ups have increased “well over 800 percent in the last few days. And that’s conservative.”
Asked what it would take to make the company’s subscription business profitable, Farnsworth says, “Well, it’s profitable right now.” As for when it turned the corner, he added, “I will tell you this, because it’s out there: MoviePass has actually paid Helios back money over the past several months, towards the loans that they have. So, that gives you an idea of when we really started focusing on getting rid of the 20 percent of the abusers.”
Important caveat: A Helios & Matheson spokesperson later clarified that Farnsworth meant MoviePass’ subscription business is profitable on a revenue-per-subscriber basis. In other words, it’s not losing money on subscriptions, but the business unit isn’t necessarily profitable when you take overhead and debt into account.
The plan marks a return to the initial unlimited model that helped turn MoviePass into a household name in the past year. But that success arrived with a massive price, as the service began hemorrhaging money. MoviePass withdrew the unlimited plan and began reworking its plans on what seemed to be a weekly basis.
In July, at the height of what was supposed to be the Summer of MoviePass, the service experienced an outage as it struggled to pay bills. Helios secured a $5 million loan from creditors Hudson Bay Capital Management in order to turn the lights back on.
“I think the big SNAFU there was the credit card company,” the executive explains. “When one company sold to the other, we had been doing business with them for four years. They decided it was too much credit for them and literally call the credit line on a Friday night and I do a personal guarantee on a Saturday.”
However things might have gone down on the back end, the optics of such a situation were clearly less than ideal. MoviePass’ struggles were very public from the beginning, as part of a publicly traded company. A literal shut down for the service appeared to be just the latest sign that the too good to be true service was exactly that.
And while Farnsworth admits that the company would have benefited from a bit more privacy, he claims that he never had any doubts about MoviePass’ future, even as he negotiated with creditors for a fresh cash injection.
“There were no moments in my mind where I thought it would go down. In my mind, I thought it was too big to fail,” he says. “You created a household name in less than a year. I think any time you have something like that, where you’re going to run into issues from sheer growth. Our investors did well investing along the way. The investors believed in us and they still do. We knew we had to slow it down to get in front of the fraud side because there were so many moving parts. It was moving so fast.”
It’s that “fraud” that was at the center of MoviePass’ woes, says Farnsworth. MoviePass’ initial downfall, he believes, was the product of too many users “gaming the system.” He believes the total number of users that fall into that category to have been around 20 percent of the overall subscriber base.
It was a minority, certainly, but still a sizable figure, given that, by June of last year, that total figure had exceeded three million. By that point, the service also comprised around five percent of U.S. box office receipts. Much of the past year has been spent attempting to plug holes in the subscription service as the MoviePass boat began rapidly taking on water.
To be clear, “gaming the system” doesn’t just mean watching a lot of movies — Farnsworth says he’s happy to have “hardcore” users, even if they’re buying way more than $9.95 or $14.95 worth of tickets. Instead, his concern is users who are doing things like sharing their subscription or just using a MoviePass ticket to use the theater’s restroom — something surprisingly common in places like Times Square, where public bathrooms are hard to come by.
One of the primary fixes, Farnsworth says, is utilizing mobile tracking to ensure that subscribers are, in fact, using the service as intended, and looking for “red flags” like constantly changing the device using the app. Users are already required to enable location-based tracking in order to enable ticket purchase. This will utilize that to ping the ticket purchaser’s location, in order to make sure that they’re actually attending the movies for which they’ve purchased tickets.
“For instance, another issue is where people would go to the theater, they’ll pick up the ticket, they’ll hand their ticket to the kid or their child or their friend or whatever it is … and the person that’s paying the subscription goes back home or whatever they do,” he says. The new strategy: “When the movie starts, 30 minutes later [we’re] able to ping them inside the theater, just to make sure they still are at that theater.”
Looking ahead, Farnsworth says that the days of constantly changing pricing and restrictions are over, and that the company is committed to the unlimited plan. In fact, in his telling, the goal was always to get back to the unlimited plan — it was just that MoviePass had to figure out how to cut down on fraud to make the plan work.
At the same time, he says MoviePass’ film studio will also be an important part of the business. It has been overshadowed by the headlines about the company’s subscription struggles, but MoviePass Films has titles starring Bruce Willis, Al Pacino and Sylvester Stallone scheduled for this year.
MoviePass also invested in “Gotti,” and although the film was reviled by critics and only grossed $4.3 million at the box office, Farnsworth doesn’t see it as a failure.
“We never looked at Gotti as a money-maker” he says. “They only projected that it would do a $1.3 million in the box office here. Because then, when we pushed it with MoviePass, we took that up to five million. So, I mean, when you can take a movie — I gotta be careful here, but when you take a movie that might not be that great or perfect, and you can move that needle, [that] was always our theory of subscription.”
Check back later for our full interview with Farnsworth. Also, this post has been updated to reflect that MoviePass recently saw 800 percent growth in sign-ups (not subscribers), and to clarify Farnsworth’s remarks about profitability.
Feels is a new dating app with profiles that look more personal – TechCrunch
Meet Feels, a new French startup that wants to change how dating apps work. According to the company, scrolling through photos and reading descriptions tend to be a boring experience. Feels want to improve profiles so that navigating the app feels more like watching TikTok videos or browsing stories.
“For the past 10 years, there’s been little innovation in the industry,” co-founder and CEO Daniel Cheaib told me. “The reason why many people uninstall dating apps is that it’s boring. Profiles all look the same and we feel like we’re browsing a catalog.”
In that case, Cheaib is thinking about Tinder, but also other dating apps that feel like Tinder but aren’t exactly Tinder, such as Bumble, Happn, etc.
Feels’ founding team has spent two years iterating on the app to find out what works and what doesn’t. Now that retention metrics are where they’re supposed to be, the company is now ready to launch more widely.
If you want to show interesting content to your users in a dating app, you have to rethink profiles. Arguably, this has been the most difficult part of the development phase. When you install the app, it takes around 15 minutes to create your profile.
At first, only 30% of new users finished the onboarding process. Now, around 75% of new users reach the end of the signup flow.
So what makes a profile on Feels different? In many ways, a profile looks more like a story, or TikTok posts. Users can record videos, add text and stickers, share photos, answer questions and more.
“When you’re done with the onboarding process, you have consistent profiles with people sharing content about them,” Cheaib said.
Like other dating apps, there are many options when it comes to gender identity — you’re not limited to woman or man. You can then say that you want to see all profiles or just some profiles based on various criteria.
After that, you can look at other profiles. Once again, Feels tries to change the basic interaction of dating apps. Most dating apps require you to swipe left or right, or give a thumbs up or a thumbs down. When you think about it, it’s a binary choice that requires a ton of micro decisions.
Sometimes, you don’t have any strong feelings about someone. Or maybe you just want to go to the next profile. And the fact that you have to triage profiles like this leads to a lot negativity, whether it’s conscious or subconscious — you keep rejecting people, after all.
When you’re looking at a profile on Feels, it fills up your entire screen. Videos start playing, you can see what the person likes and who they are in front of a camera. You can react on some content or you can simply move on by swiping up. There’s no heart or like button.
When the startup thought they finally were going somewhere, they raised a $1.3 million funding round (€1.1 million) from a long list of business angels, such as somebody in Atomico’s business angel program, Blaise Matuidi, Eric Besson, René Ricol, Ricardo Pereira , Yohan Benalouane, Nampalys Mendy, Jean Romain Lhomme, Julien Radic and Jean Michel Chami.
Now, Feels plans to attract new users with organic TikTok posts, some TV ads and more. The company wants to reach one million users by the end of the year with a big focus on France for now. There are 100,000 users right now.
When it comes to monetization, Feels started offering a premium subscription to unlock more features. The company is still iterating on that part.
Feels is just getting started in a crowded and competitive industry. Unlike other companies, Feels has invested heavily in its own product before working on user acquisition and paid installs. It’s an ambitious strategy but it has a lot of potential as it could lead to a truly different dating app.
Social audio startup Stationhead looks beyond music as it hits 100K monthly active users – TechCrunch
When I’ve written about Stationhead in the past, I’ve focused on how the startup aims to recapture bring personality and interactivity of a live radio broadcast to streaming music. But CEO Ryan Star said his ambitions are broader now: “We’re going to be the largest social audio platform in the world.”
The startup says it’s growing quickly, with 100,000 monthly active users — a number that’s growing by 65% each month — and 500,000 total users. There are 6,300 hosts on the platform, and they created nearly 2 million live and recorded streams in the first three months of the year.
COO Murray Levison told me that the pandemic has brought more artists to the platform as they look for new ways to reach their fans. For example, Cardi B joined the fan show Bardigangradio last month, prompting 132,000 paid streams of her new single on Apple Music and Spotify during the broadcast. (Stationhead integrates with both music streaming services — when a DJ cues up a song, it’s actually playing through your account.)
At the same time, both Star (who co-founded the company due to his own frustrations as an independent musician) and Levison suggested that playing music is not quite as central to their vision as it used to be. Instead, they said Stationhead is all about live audio broadcasting, with or without music.
From a product perspective, Levison said they’re trying to build “the best broadcasting tools for creators and everybody people to use.” At the same time, he added, “Music is still at the core of what we’ve built. Just like games are to Twitch, music is our social glue.”
While the company emphasizes the live experience (which Levison described as “the core value prop”), Stationhead also supports recording shows for listening later, and apparently 50% of users are listening to both live and recorded shows. It has also been beta testing a tipping feature that will allow broadcasters to monetize their shows.
Of course, you can’t talk about social audio without talking about Clubhouse, which was attracting 2 million active users each week in January, according to CEO Paul Davison. Levison suggested that the buzz around Clubhouse has also benefited Stationhead as potential acquirers and investors get more excited about social audio. And Star argued that the companies are taking very different approaches.
“It’s in the name Clubhouse, it’s exclusive,” Star said. “It’s about social climbing and getting closer to the stage. [Stationhead is] living in the world where Cardi B was excited to meet her fans. We are for the 99 percent.”
TikTok funds first episodic public health series ‘VIRAL’ from NowThis – TechCrunch
TikTok is taking another step towards directly funding publishers’ content with today’s announcement that it’s financially backing the production of media publisher NowThis’ new series, “VIRAL,” which will feature interviews with public health experts and a live Q&A session focused on answering questions about the pandemic. The partnership represents TikTok’s first-ever funding of an episodic series from a publisher, though TikTok has previously funded creator content.
Through TikTok’s Instructive Accelerator Program, which was formerly known as the Creative Learning Fund, other TikTok publishers have received grants and hands-on support from TikTok so they could produce quality instructive content for TikTok’s #LearnOnTikTok initiative. The program today is structured as four, eight-week cycles during which time publishers post videos four times per week.
NowThis had also participated in the Creative Learning Fund last year and was selected for the latest cycle of the Instructive Accelerator Program. But its “VIRAL” series is separate from these efforts.
NowThis says it brought the concept for the show to TikTok earlier this year outside of the accelerator program, and TikTok greenlit it. TikTok then co-produced the series and provided some funding. Neither NowThis nor TikTok would comment on the extent of the financial backing involved, however.
The “VIRAL” series itself is hosted by infectious disease clinical researcher Laurel Bristow, who spent the last year working on COVID treatments and research. Every Thursday, Bristow will break down COVID facts in easy-to-understand language, NowThis says, including things like vaccine efficacy, transmission timelines, and treatment. The show will also bust COVID myths, provide information about ongoing public health risks, and feature interviews with a cross-section of experts.
Each episode of the will be 45 minutes in length and will also include an interactive segment where the TikTok viewing audience will be able to engage in a real-time Q&A session about the show’s content. In total, five episodes are being produced, and will air starting on Thursday April 15 at 6 PM ET and will run through Thursday May 13 on the @NowThis main TikTok page.
@nowthisTune in to our new TikTok live show VIRAL on Thursdays at 6pm ET with host @kinggutterbaby
♬ original sound – nowthis
NowThis has become one of the most-followed news media accounts on TikTok, with 4.6 million followers across its news and politics channels, since launching a little over a year ago. Because of its focus on video, it’s been a good fit for the TikTok’s platform.
The approach TikTok is taking with “VIRAL’s” production, it’s worth noting, stands in contrast to how other social media platforms are handling the pandemic and COVID-19 information. While most, including TikTok, have pledged to fact check COVID-19 information, remove misinformation and conspiracies, point users to official sources for health information, and provide other resources, TikTok is directly funding public health content featuring scientists and researchers, and then promoting it on its network.
The company explained to TechCrunch its thinking on the matter.
“As the pandemic continues to evolve, we think it’s important to provide our community an outlet to dispel misinformation and communicate with public health experts in real-time,” said Robbie Levin, Manager of Media Partnerships at TikTok. “NowThis has consistently been a great partner that produces engaging and informative content, so we felt this series would be an impactful and important avenue for our users to receive credible information on our platform,” Levin noted.
While the pandemic has driven the topic of choice here, paying creators for content is not new. And TikTok isn’t the only one to do so. Instagram and Snapchat are both funding creator content for their TikTok clones, Reels and Spotlight, respectively. And new social platforms like Clubhouse are funding creators’ shows, as well.
TikTok says it’s not currently talking to other publishers to produce more series like “VIRAL,” but it isn’t ruling out the idea of expanding its creator funding and producing efforts. In addition to its accelerator program, which is continuing, TikTok says if “VIRAL” proves successful and the community responds positively, it will pursue similar opportunities in the future.
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