AMC might not survive
06-03-20 | 02:00 PM
#1
Thread Starter
DVD Talk Hero
AMC might not survive
Link:
While I'd hate to see a whole company go under, my hot take is that there are too many theaters in major cities. There are probably 40 screens within a few miles of my home. I think things have gotten so diluted and the opening weekend is too important. I think the whole industry could scale back, stop relying on blockbusters and bring back the smaller movies. It would be painful, but we don't need to be spending hundreds of millions of dollars on many of these movies.
New York (CNN Business)AMC Theatres, the world's biggest movie theater chain, said on Wednesday that it has "substantial doubt" it can remain in business after closing locations across the globe during the coronavirus pandemic.
The theater chain, which closed its theaters earlier this year, expects to have lost between $2.1 billion and $2.4 billion in the first quarter. The company also said that its revenue fell to $941.5 million, which was down roughly 22% from $1.2 billion in the same quarter last year. This quarter, the situation has gotten substantially worse. "We are generating effectively no revenue," the company said in a regulatory filing Wednesday.
AMC (AMC) will continue to monitor the "potential lifting of various government operating restrictions," but added that the chain has serious challenges even if restrictions are lifted. That includes studios holding back new films from being shown. "Even if governmental operating restrictions are lifted in certain jurisdictions, distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally, which may further limit our operations," the company said.
The company said that it had a cash balance of $718.3 million as of April. "We believe we have the cash resources to reopen our theatres and resume our operations this summer or later," AMC said. "Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases and our ability to generate revenues." The company's stock rose 4% after initially declining 8% in early morning trading on Wednesday.
The coronavirus outbreak has ravaged the movie theater business. Movie theaters large and small were closed because of the outbreak and some of the year's biggest films — "Mulan," "Wonder Woman 1984" and "F9" — were delayed.Movie theaters like AMC also faced another existential threat because audiences can watch movies at home. This was the case with Universal's "Trolls World Tour," which bypassed theaters for a digital release. Universal's decision to release "Trolls" on demand caused a feud between the studio and AMC leading to the chain to ban Universal's films from its theaters.
The theater chain, which closed its theaters earlier this year, expects to have lost between $2.1 billion and $2.4 billion in the first quarter. The company also said that its revenue fell to $941.5 million, which was down roughly 22% from $1.2 billion in the same quarter last year. This quarter, the situation has gotten substantially worse. "We are generating effectively no revenue," the company said in a regulatory filing Wednesday.
AMC (AMC) will continue to monitor the "potential lifting of various government operating restrictions," but added that the chain has serious challenges even if restrictions are lifted. That includes studios holding back new films from being shown. "Even if governmental operating restrictions are lifted in certain jurisdictions, distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally, which may further limit our operations," the company said.
The company said that it had a cash balance of $718.3 million as of April. "We believe we have the cash resources to reopen our theatres and resume our operations this summer or later," AMC said. "Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases and our ability to generate revenues." The company's stock rose 4% after initially declining 8% in early morning trading on Wednesday.
The coronavirus outbreak has ravaged the movie theater business. Movie theaters large and small were closed because of the outbreak and some of the year's biggest films — "Mulan," "Wonder Woman 1984" and "F9" — were delayed.Movie theaters like AMC also faced another existential threat because audiences can watch movies at home. This was the case with Universal's "Trolls World Tour," which bypassed theaters for a digital release. Universal's decision to release "Trolls" on demand caused a feud between the studio and AMC leading to the chain to ban Universal's films from its theaters.
06-03-20 | 02:16 PM
#2
DVD Talk Hero
Re: AMC might not survive
Where I'm located, I'd lose the closest IMAX and, of course, Dolby Cinema.
06-03-20 | 03:04 PM
#3
DVD Talk God
Re: AMC might not survive
If I lose the AMC near my house, that means I have to drive an extra 6 miles on top of the 8ish I already do. I may not go to movies anymore outside of a few blockbusters.
06-03-20 | 03:14 PM
#4
DVD Talk Godfather
Joined: Oct 2003
Posts: 57,874
Received 1,745 Likes
on
1,402 Posts
From: Home of 2013 NFL champion Seahawks
Re: AMC might not survive
I usually go to the Regal, but AMC ia a little closer. It used to be a depressing dump, but they switched to the reclining loungers, and I’’d started going there more often.
Not a big fan of chains, but also not a fan of one disappearing and the other dominating.
Not a big fan of chains, but also not a fan of one disappearing and the other dominating.
06-03-20 | 03:31 PM
#5
DVD Talk Legend
Re: AMC might not survive
I don't want anyone to lose their jobs. But I'm actually dumbfounded as to how theaters are still open. Movie going is an awful experience. Whether is people texting, excessive ticket prices, etc. It's just awful.
The following 5 users liked this post by starseed1981:
Alan Smithee (06-03-20),
[email protected] (06-04-20),
Rob V (06-04-20),
Sonny Corinthos (06-04-20),
spainlinx0 (06-05-20)
06-03-20 | 03:47 PM
#6
DVD Talk Legend
Re: AMC might not survive
AMC is the worst theater where I live. Run down af. Haven't been there in years.
06-03-20 | 03:53 PM
#7
Thread Starter
DVD Talk Hero
06-03-20 | 03:57 PM
#8
Re: AMC might not survive
Where I'm at... we only have 2 theaters within an hour drive in any direction.
One being a Majestic. The other being a Cinemark.
I've never seen an AMC theater, much less been to one.
One being a Majestic. The other being a Cinemark.
I've never seen an AMC theater, much less been to one.
06-03-20 | 04:32 PM
#9
Administrator
Re: AMC might not survive
Aw man. The only thing near me is AMC. Or Arclight, but I really don't like the fact that Arclight doesn't have matinee pricing.
06-03-20 | 05:01 PM
#10
DVD Talk Hall of Fame
Re: AMC might not survive
My local small town theater closed down right before the Covid-19 outbreak so that just left the closest theater which is AMC a good 40 minutes away. Guess I will be waiting for digital rentals for now on.
06-03-20 | 05:18 PM
#11
Thread Starter
DVD Talk Hero
Re: AMC might not survive
I'd love to see a smaller theater be able to open back up and make a go of it. Maybe this will shift that.
The following users liked this post:
IBJoel (06-03-20)
06-03-20 | 07:04 PM
#12
DVD Talk Legend
Re: AMC might not survive
AMC was my local go to. They did a nice remodel with the reclining seats and reservation system. Being a premier "VIP" has more than paid for itself. Would be sorry to see it go.
06-03-20 | 07:04 PM
#13
DVD Talk Hero
Re: AMC might not survive
That's a lot of highly modified real estate. I would think someone would snatch up the higher-quality locations under a new name.
Lots of the AMC's around here remodeled over the past five years. They're not as nice as the higher-end dinner theaters. But they're pretty good.
Lots of the AMC's around here remodeled over the past five years. They're not as nice as the higher-end dinner theaters. But they're pretty good.
The following users liked this post:
Deftones (06-03-20)
06-03-20 | 07:32 PM
#14
DVD Talk Limited Edition
Re: AMC might not survive
MoviePass says “welcome to the club”
I usually go to Cinemark near me, so I’ve only been to AMC a handful of times in my life. Still sucks to see a big company fail through no fault of their own.
I usually go to Cinemark near me, so I’ve only been to AMC a handful of times in my life. Still sucks to see a big company fail through no fault of their own.
06-03-20 | 07:38 PM
#15
DVD Talk God
Re: AMC might not survive
Has nothing to do with Moviepass. Shutting down for nearly 3 months has been a disaster. AMC took on debt to introduce A-List, which was starting to turn a profit and was approaching 1M subscribers and to remodel their theatres.
They had money to successfully operate and were doing well before the pandemic hit, but they still had to pay rent and operating expenses when the pandemic shut them down. With no money coming in, any business would suffer.
06-03-20 | 07:55 PM
#16
DVD Talk Godfather
Re: AMC might not survive
And I'm sure with A-List probably gone, Regal will discontinue their service soon as well.
06-03-20 | 07:59 PM
#17
DVD Talk God
Re: AMC might not survive
People who spend the $20/month are likely going to come in and spend money on the $8 popcorn and $6 sodas. That's how they make money.
If AMC somehow hangs on, they have no reason to drop it. They need it.
06-03-20 | 08:07 PM
#18
DVD Talk Godfather
Re: AMC might not survive
Why would they discontinue it? You need that kind of service to bring in customers.
People who spend the $20/month are likely going to come in and spend money on the $8 popcorn and $6 sodas. That's how they make money.
If AMC somehow hangs on, they have no reason to drop it. They need it.
People who spend the $20/month are likely going to come in and spend money on the $8 popcorn and $6 sodas. That's how they make money.
If AMC somehow hangs on, they have no reason to drop it. They need it.
06-03-20 | 08:09 PM
#19
DVD Talk God
Re: AMC might not survive
A-List was also in development prior to Moviepass becoming popular. John Campea who has a YouTube channel used to work at AMC and said it was in development for like 5 years when he was there.
You can't half ass something like this as a "reaction" You have to make the finances work.
06-03-20 | 08:14 PM
#20
DVD Talk Legend
Re: AMC might not survive
I got $50 in AMC gift cards for Xmas. I hope they stay open long enough for me to use them.
06-03-20 | 08:21 PM
#21
DVD Talk Godfather
Re: AMC might not survive
No it wasn't. Cineworld owns Regal and they have had a program in the UK for well over a decade. They took their time developing it for the U.S. market. They didn't rush it out as a reaction to AMC.
A-List was also in development prior to Moviepass becoming popular. John Campea who has a YouTube channel used to work at AMC and said it was in development for like 5 years when he was there.
You can't half ass something like this as a "reaction" You have to make the finances work.
A-List was also in development prior to Moviepass becoming popular. John Campea who has a YouTube channel used to work at AMC and said it was in development for like 5 years when he was there.
You can't half ass something like this as a "reaction" You have to make the finances work.
06-04-20 | 06:30 AM
#22
DVD Talk Hero
Re: AMC might not survive
There is one in Newpark Mall and it looks nice from the photos I have seen and hope it does not go out of business
06-04-20 | 07:49 AM
#23
DVD Talk Hall of Fame
Re: AMC might not survive
I like going to the movies (well, back in the Before Times.) They renovated the second closest AMC to me and it's pretty nice now, and the closest one to me is a dine-in which i guess is nice just not my preference. Another one used to be 'the dollar theatre', then became the 2.00 theater, now it's an AMC that plays first run movies for 5 or 6 bucks but feels like it should be condemned so they went the wrong way with that.
I've only got 4 theatres within 30 minutes of me (not counting the IMAX at the children's museum).
I hope they don't fail, I like having multiple choices and I don't want a whole company to go down. I know in some areas a movie theatre is apparently a lawless wasteland of kids and phones and obnoxious people but I guess I've been lucky in that regard.
But between the original shift toward streaming, a 3-month-plus shutdown, and lingering for-who-knows-how-long concerns on social gatherings and sitting in a cloth seat that someone else just sat in, theaters definitely have a major uphill climb. I think, bare minimum, the "movie going experience" as we knew it before is irrevocably and drastically changed.
I've only got 4 theatres within 30 minutes of me (not counting the IMAX at the children's museum).
I hope they don't fail, I like having multiple choices and I don't want a whole company to go down. I know in some areas a movie theatre is apparently a lawless wasteland of kids and phones and obnoxious people but I guess I've been lucky in that regard.
But between the original shift toward streaming, a 3-month-plus shutdown, and lingering for-who-knows-how-long concerns on social gatherings and sitting in a cloth seat that someone else just sat in, theaters definitely have a major uphill climb. I think, bare minimum, the "movie going experience" as we knew it before is irrevocably and drastically changed.
The following users liked this post:
IBJoel (06-04-20)
06-04-20 | 09:15 AM
#24
DVD Talk Legend
Re: AMC might not survive
In terms of where I live I go to AMC Theaters the least. I think they'll get bought out as I posted in the Covid movie thread about Amazon might be interested in buying them.
06-04-20 | 09:20 AM
#25
DVD Talk Godfather
Re: AMC might not survive
Isn't Amazon considered a film studio? I doubt they can buy them up unless the Supreme Court reverses course.