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The Entire Economy Is MoviePass Now. Enjoy It While You Can.

Jay R. Ritter

In order for a business to be successful, you’d assume it would have to sell its goods and services above its costs, right? According to Cordell Eminent Scholar Jay R. Ritter, 76 percent of the companies that went public last year were unprofitable on a per-share basis. Spotify lost $1.5 billion last year, but continued to add millions of users. Uber, which is expected to go public next year, lost $4.5 billion last year. MoviePass continues to lose money by offering a monthly movie ticket subscription allowing customers to watch up to one movie per day for $9.95, when most single movie tickets cost about $9.

With such high losses, how are these companies staying in the game? Dr. Ritter explains in this article from The New York Times.