For instance, under founder Stacy Spikes, MoviePass charged $50 a month for its service, but couldn’t get enough subscribers to break even. Then it was acquired by Helios & Matheson Analytics, whose chief executive officer, Ted Farnsworth, came up with the idea of charging much less:
[...] It went from being “a scrappy startup trying to keep the lights on” (bad) to a buzzy “disrupter in the making” (good) by giving up on trying to keep the lights on. The trick is not to make enough money to cover your costs; it’s to stop trying. Losing a lot of money is better than losing a little money; it has more panache, attracts more attention, certainly gives you that attractive hockey-stick user growth. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. Annual income twenty pounds, annual expenditure three hundred million pounds, result unicorn.