They'd need to literally hire people to review every generated image.
Inconvenience is not an excuse for ignoring the law. If I have a business idea and the only way I can implement it is by breaking the law, it means I can't do that thing. It doesn't mean I can just ignore the law that is stopping me from doing what I want.
MoviePass's concept is clearly profitable otherwise Regal, AMC, and other chains that offer subscription-based memberships wouldn't be so popular..
There's 2 major things you are missing here. MoviePass had to pay the full ticket price for every person who went to see a movie. When Regal/AMC provides the ticket to their own theater, they only have to pay out the cost that goes back to the studio. So, if the ticket normally costs $10, MoviePass had to pay the full $10, while a theater will only have to pay $5-6. The other major factor that makes this plan profitable for the theaters is that most of their profits come from concession sales. Giving out the tickets gets the customer in the door. A $7 drink makes back all of the money they lost on the ticket price. Another $7-20 on popcorn and/or candy adds nothing but profit. In fact, this was part of MoviePass's long-term strategy. They wanted to hit up the theaters for a percentage of their concession sales in return for the added traffic they were sending to the theaters. Of course, the theaters realized they could just make all that money for themselves by running their own plans. MoviePass's model wasn't feasible...for MoviePass. But it is for theater owners.
Hotels are tired of getting ripped off. I checked into a hotel and they had towels from my house. -- Mark Guido