MoviePass seems like the perfect invention for an age of entertainment gluttony: an all-you-can-eat buffet of movies in theaters for one cheap monthly subscription. Why does the company seem to be teetering on the edge of bankruptcy?

Theory one: The people at MoviePass aren’t too bright, and got themselves into a business model that couldn’t possibly succeed.

Maybe. One could argue that anyone who has ever tried to start a new business is suffering from a highly specialized form of stupidity: believing, against all evidence, that their company will be one of the lucky minority that doesn’t spiral down the drain. Most companies fail. Even most companies founded by previously successful entrepreneurs fail.