AMC could run out of money by year's end

[Shawn Knight]

Editor's take: As the magnitude and duration of the pandemic remain uncertain, I’ve got an ever-increasing suspicion that the traditional movie-watching experience is going to be a permanent casualty of the new normal.

In a filing with the US Securities and Exchange Commission this week, AMC said it expects to burn through its current cash reserves by the end of 2020 or in early 2021.

As of October 9, 2020, AMC had resumed operations at 494 of its 598 theaters in the US, albeit with limited seating capacities of between 20 percent and 40 percent. The majority of theaters still closed are in California, New York, Maryland, North Carolina and Washington State and are among the company’s most lucrative locations, representing 23 percent of revenue in 2019.

Since reopening, AMC has served north of 2.2 million guests, a decline of 85 percent compared to the same period a year ago (before the pandemic).

In addition to dealing with ongoing closures and limited seating capacity, AMC’s business has been impacted by major movie releases being pushed back to 2021. Worse yet, some studios are continuing to explore the direct to streaming approach, bypassing theaters entirely.

Share value in AMC Entertainment Holdings Inc. is down nearly 18 percent on the news.

Regal Cinemas earlier this month decided to reclose its theaters in the US and the UK in response to the continuing pandemic.

Image credit: Chan2545, wavebreakmedia

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https://www.techspot.com/news/87108-amc-could-run-out-money-year-end.html

 

[kmo911]

They could stream trough steam servers those movies. and send it home for one pay. 100 steam watchers could be in a room but not here. try it out.

 

[seeprime]

They could stream trough steam servers those movies. and send it home for one pay. 100 steam watchers could be in a room but not here. try it out.

AMC is not licensed to do that. The movie studios will decide if they want to help AMC or let them shrivel, then buy them for dirt cheap. In the meantime, new movie streaming is being offered on many streaming services for a premium, Disney+ wants $30 per "Premier access" flick.

 

[p51d007]

Movie theaters, given the lack of QUALITY movies coming out of hollywood these days, politically correct & not "funny", when it comes to comedy, and in your face garbage, might as well close up shop with regard to "go to the theater" movies. Thanks to the corona hype, people are too afraid, or banned by local/state governments from attending them. (but peaceful protest are ok of course).
With the rise in streaming, along with huge inexpensive tv's, sound bars, it's just more convenient to watch them in the comfort of your own home, with your own inexpensive snacks. Not to mention having to drive to the theater & back, traffic, weather, overpriced snacks.
Things have evolved. We don't manufacture buggy's, horse carriages, buggy whips these days.
Just like with the paper news industry, movie theaters will eventually go by the wayside.

 

[antiproduct]

If only Moviepass had held on a little longer with their annual subscriptions...

 

[nickp91]

AMC is the new Blockbuster Video

 

[Uncle Al]

It's called business and if you're not innovative and learn to roll with the punches your business goes away. If they die, they die ... but not to worry, there will be plenty of folks out there that will figure out an innovative way and pick up where AMC leaves off.

 

[mailpup]

In this environment the few remaining drive-in theaters could make a minor comeback if only there were enough movies for them to show.

 

[wiyosaya]

In my area, the lone AMC theater has reclining seats - which are a bonus. That theater also, IMO, arguably has a decent sound system. The one thing that I do not like about that theater is that you can hear noise from the adjacent theaters through the walls of the theater you are in. I would not go there anyway. My wife and I have basically given up on theaters. We wait until what we want to see is released on disk, then borrow it from our local library system. The entire experience is much more pleasurable than paying a theater to subject us to inconsiderate movie goers.

 

[wiyosaya]

AMC is not licensed to do that. The movie studios will decide if they want to help AMC or let them shrivel, then buy them for dirt cheap. In the meantime, new movie streaming is being offered on many streaming services for a premium, Disney+ wants $30 per "Premier access" flick.

For me, $30 for Premier Access is almost as ridiculous as the theater experience. While marginally cheaper, I cannot imagine that the audio/video quality is as good as Blu-ray. Personally, I wait until whatever movie it is is released on Blu-ray and borrow the movie from our local library system. The "cost" is generally free. IMO, that is hard to beat.

 

[Adhmuz]

Remember when AMC threatened the movie studios that were playing with the idea of streaming new movies to never show their movies again in their theaters?

How's that working out for you now AMC?

I'm ready to accept not going to a movie theater ever again, they're probably the primary reason people get sick, well after public transit at least.

 

[Axiarus]

AMC is not licensed to do that. The movie studios will decide if they want to help AMC or let them shrivel, then buy them for dirt cheap. In the meantime, new movie streaming is being offered on many streaming services for a premium, Disney+ wants $30 per "Premier access" flick.

I mean, $30 is not a bad price.

 

[Irata]

I mean, $30 is not a bad price.

For playing a movie on a system I paid for, using an Internet access I am paying for in a house I am paying for while sitting on a couch that ....I paid for ?

 

[Endymio]

AMC is not licensed to [stream trough steam servers].

The licensing between AMC and major studios controls those studio releases only. There is nothing to prevent AMC from finding other uses for any of its theatres, including streaming non-Hollywood produced content.

 

[Axiarus]

For playing a movie on a system I paid for, using an Internet access I am paying for in a house I am paying for while sitting on a couch that ....I paid for ?

Yes. It’s a day one theatre movie that you can invite as many people as you want to. You, your wife and two kids already makes it cheaper. You and three friends split it. Cheaper.

 

[Irata]

Yes. It’s a day one theatre movie that you can invite as many people as you want to. You, your wife and two kids already makes it cheaper. You and three friends split it. Cheaper.

That‘s lots of caveats, but I agree that it could be cheaper.
I already see discussions with friends why they should pitch in since they only watch the movie once and I get to „own“ it (as long as I stay subscribed to Disney+).

Look at drinking and dining - if I prepare food and drinks at home, the ingredients are cheaper than what a restaurant or bar would charge me. But ideally, when I go out I don‘t have to do the shopping, food preparation, cleaning.....part of the total is for comfort, service and amenities.

Same for the movies: Part of what I pay for (if they do it right) are the amenities. So if I watch it in an environment that I provide, I expect a considerably lower cost.

 

[BobHome]

In my area, the lone AMC theater has reclining seats - which are a bonus. That theater also, IMO, arguably has a decent sound system. The one thing that I do not like about that theater is that you can hear noise from the adjacent theaters through the walls of the theater you are in. I would not go there anyway. My wife and I have basically given up on theaters. We wait until what we want to see is released on disk, then borrow it from our local library system. The entire experience is much more pleasurable than paying a theater to subject us to inconsiderate movie goers.

The library has become our local go-to place for movies (Onward) and even some shows (Picard) well before this pandemic; I've been to a theater maybe 5 times the last 5 years. I even borrow ones that are on Netflix, Hulu, HBO (Max), Starz, Showtime, etc.
I also like discs because our (Panasonic) Blu-ray players can play them at 1.5 speed with sound... some videos have people talking so s-l-o-w-l-y....

 

[BobHome]

WHOA! I just received an email from AMC: "Welcome Back to AMC Cascade Mall 14, Bob!
AMC Cascade Mall 14 is now open, and we’re thrilled to welcome you back!"

Uh, no thanks. Especially with the pandemic on the rise again. But these are desperate times, right?

 

[Mugsy]

Hollywood is clearly aware that Home viewing has been the trend... not just during the pandemic, but since the first 55" flat screen TV.

AMC should have been developing a "home distribution network" to show first run movies, and then offer it to the studios as an outlet.

Disney clearly figured this out on their own. It's only a matter of time before every other studio does too.

History is littered with the corpses of corporations that failed to see the future coming and change with the times.