Dear Startup Investor,
Dealflicks has recently made major strides in picking up new customers.
Added to our portfolio last December, Dealflicks provides discounts of up to 60% on tickets from participating theaters. Moviegoers can access these discounts through Dealflicks’ website. Or they can download its mobile app.
And now, they can also go through Costco.com. Nice. The deal with Costco significantly increases Dealflicks’ exposure to consumers.
In July 2014, Dealflicks’ discounts spanned about 400 movie theater locations. We thought that was pretty good. Well, since then, the company has grown that number to more than 600 locations.
Importantly, its recent traction gains have bolstered revenues. We noted last December that Dealflicks’ annual revenue run rate was $2 million. Now it’s double that… achieved in less than a year.
Dealflicks is also adding bigger movie theater chains. It now has 14 of the country’s top 50 chains and three of the top 10. Its biggest is Carmike – the fourth-largest chain in the country. Dealflicks serves 43 of its locations. It had 18 when it started with Carmike a year ago.
The company is now talking to Carmike about serving its chain of 270 theaters nationwide.
Costco was a big catch, but we consider it a sign of things to come. Case in point: Olive Garden. Dealflicks is participating in its current national promotion campaign.
Dealflicks is making the transition from local to nationwide coverage. So, the fact that it’s attracting more retailers with national reach is no surprise.
While very positive, the company’s traction is still at a very early stage. Anything can happen, good or bad. The company’s ultimate success is certainly not a given.
I spoke to co-founder Sean Wycliffe a couple of days ago. He’s an optimistic guy. Most founders are. But he understands there are plenty of challenges ahead: continuing to get more of a national footprint… capturing more of the bigger chains… cutting down the costs of acquiring customers… and going global at some point.
But I’m pleased with its progress. It’s doing as well as could be expected at this stage. And I’m not the only one who feels this way. Dealflicks recently did an “extended seed” round raise. It was oversubscribed within a week.
Sean also told me Dealflicks will soon be coming to Baltimore (where I live) via a movie theater they recently signed up.
You better believe I’ll be using its discounts as soon as they’re available here to watch my favorite movies.
Invest early and well,
Andy Gordon
Startup Investor Portfolio
