AMC Says It Won’t Save Another Popular Movie Theater That Filed For Bankruptcy
It’s no question that the pandemic put the movie theater industry through the absolute ringer, and those industry impacts have been felt on a global scale. AMC, however, has fared better than Regal’s UK-based parent company Cineworld. Earlier this year, Cineworld filed for bankruptcy and entered into discussions to have AMC absorb some of its theaters, but AMC has since had a change of heart and has ceased talks with Cineworld.
AMC officially moved to end talks with Cineworld via a formal filing with the Securities and Exchange Commission. According to CNBC, the movie giant’s move to cease negotiations with Cineworld likely has to do with its own fiscal performance in the last few quarters. Despite efforts and incentives to lure people back to theaters, profits for AMC continue to be lackluster.
AMC’s future and the future of the movie theater industry, in general, remain uncertain. Thus, AMC can’t save Cineworld if it’s still fighting to save itself. The pandemic served to usher in new options and avenues to experience films. Streaming services have made it exceedingly convenient to sit down and watch a new movie from the comfort of one’s own home.
It’s not only the convenience that’s keeping people from going to AMC or other theaters. It’s the cost. Going to the movies, while a memorable experience, is not cheap, and inflation has only exacerbated this fact. Watching a new movie on a streaming service that one already pays a nominal monthly fee for can be far more cost-effective than physically going to the theater to watch a film.
Filmmakers and studios have caught onto this, too. Even though pandemic restrictions have dissipated many new films are still debuting on streaming platforms. And when films do release first in theaters like AMC, many of them are timed releases and drop on streaming platforms after a certain window has passed. Even films like Top Gun: Maverick, which was a rarity in that it remained exclusive to theaters, didn’t take a terribly long time to reach the home market.
The fact that so many filmmakers have been keener to keep dropping their films on streaming platforms instead of theaters has put AMC in a difficult position. AMC doesn’t have the strong lineup of blockbusters to lure people off their couches, out of their homes, and into their theaters. The lackluster theater lineup becomes immediately evident with a quick perusal of AMC’s website.
Regardless of its current predicament, AMC remains hopeful that the movie theater industry will experience that post-pandemic renaissance that it so desperately needs. The theater giant has asserted that it is confident that 2023 will be a strong year for the industry. Highly anticipated blockbuster titles, like The Super Mario Bros. Movie and Guardians Of The Galaxy Vol. 3, are slated for theatrical releases.
AMC is banking on cash cows such as those to infuse it with some much-needed capital. While the future of AMC and movie theaters remains to be determined, what is clear is that the industry is currently in a state of flux. Any plot twists in this ironic economic narrative are ultimately in the hands of moviegoers and studios’ willingness to commit to the pre-pandemic theatrical release formula.
