AMC estimates it needs $750 million to remain afloat in 2021

[Shawn Knight]

What just happened? AMC Entertainment is teetering on the edge of bankruptcy. In a filing with the US Securities and Exchange Commission on Friday, the company said it has entered into a debt purchase agreement that’ll bring in $100 million in cash. In the absence of additional liquidity, however, AMC said it expects that its existing cash resources will be depleted during January, 2021.

To remain afloat through 2021, AMC estimates it will need approximately $750 million in additional money. Again, that’s just an estimate based on multiple assumptions that could vary including the ongoing uncertainty surrounding the pandemic.

As of November 30, AMC was operating 404 of its 594 US theaters and only 108 of its 359 leased and partnership international theaters, both with limited seating capacity and during limited opening hours.

AMC is also being impacted by Warner Bros.’ controversial decision to release its 2021 films through HBO Max on the same day they debut in theaters. AMC in its filing said the move could result in other studios adopting a similar strategy.

Warner Bros.’ decision also provoked the ire of director Christopher Nolan who blasted the studio and HBO Max. Other directors, including James Gunn and Denis Villeneuve, are also reportedly upset with the dual release plans.

Image credit Fer Gregory, Nejron Photo

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https://www.techspot.com/news/87935-amc-estimates-needs-750-million-remain-afloat-2021.html

 

[seeprime]

It might be best if all the large theater chains with sticky floors go under. Let someone rebuild the theater business with a superior viewing experience. I'd pay twice as much to see a new movie in a plush chair with few people around to ruin the experience. Oh wait. I already have that at home.

Never mind.

 

[Lionvibez]

I think its time to change your business model AMC or bye bye.

 

[VitalyT]

$750 million just to stay afloat - that is one massive turd.

Seriously, I do not think anything can save them anymore.

 

[captaincranky]

This is hardly a "whodunit" even worthy of a game of "Clue".

LCD strangled AMC in the living room, with an extension cord.

 

[Superconductor]

Let em die

 

[Squid Surprise]

AMC in its filing said the move could result in other studios adopting a similar strategy.

What filing? Did the author cut and paste from somewhere?

 

[Endymio]

LCD strangled AMC in the living room, with an extension cord.

And video killed the radio star.

Seriously, there is a segment of the theatre market that is still growing (pre-Covid, at least) -- the so-called PLF segment: IMAX and similar screens. Seeing a film in IMAX 3-D on a 100-ft wide screen is still an experience worth leaving the living room for.

 

[trparky]

Good. The days of expensive blockbuster films are gone.

Oh, are the actors crying that they're no longer going to be able to make millions per film that they star in? Tough! Welcome to the real world where things aren't fair. Hope you enjoy your stay.

 

[captaincranky]

Seriously, there is a segment of the theatre market that is still growing (pre-Covid, at least) -- the so-called PLF segment: IMAX and similar screens. Seeing a film in IMAX 3-D on a 100-ft wide screen is still an experience worth leaving the living room for.

I imagine that's fine, if the movie was shot in Imax format, specifically for Imax.

I went to see one of the "Transformer" series at the Franklin Institute. (Strangely they have an Imax screening room).

I was the biggest piece of crap I ever witnessed. (OK, I'm exaggerating a bit, but still).
It was apparently converted from standard 70 mm (?) film format. There was so much barrel distortion, everybody's head at edge of the screen was egg shaped. All the photographic quality aspects were piss poor. (color saturation, contrast, shadow detail, et al).

I didn't really enjoy the movie (**) until Redbox lent me the DVD, and I played it on my home screen, a lowly 40" FHD, CCFL, from Best Buy.

(**) This assumes of course, it is possible to enjoy a Transformers movie in the first place.

 

[wiyosaya]

And video killed the radio star.

Seriously, there is a segment of the theatre market that is still growing (pre-Covid, at least) -- the so-called PLF segment: IMAX and similar screens. Seeing a film in IMAX 3-D on a 100-ft wide screen is still an experience worth leaving the living room for.

The market for 3D TVs dried up several years ago when Manufacturers stopped making them.

And this is yet again, Your Opinion. In theaters, I have never seen a 3D movie that was worth the price of the ticket. IMO, it adds little to nothing to the experience. It is a gimmick that is designed to take money from the moviegoer's pocket and put it in the pocket of the movie producer/theater. It is simply one other aspect of seeing movies in theaters that fails to live up to the value promised.

 

[Endymio]

I went to see one of the "Transformer" series at the Franklin Institute. (Strangely they have an Imax screening room). I was the biggest piece of crap I ever witnessed. (OK, I'm exaggerating a bit, but still).

That's very true. There are "IMAX" screens that aren't much larger than a traditional screen, which show upconverted movies, rather than natively-filmed ones. Personally, I think IMAX hurts its brand by allowing these to be shown under the same name, as they're nothing like the true experience.

 

[wiyosaya]

It might be best if all the large theater chains with sticky floors go under. Let someone rebuild the theater business with a superior viewing experience. I'd pay twice as much to see a new movie in a plush chair with few people around to ruin the experience. Oh wait. I already have that at home.

Never mind.

I won't go to any theater in my area, much less so, the Regals, because of sticky floors.

 

[captaincranky]

The market for 3D TVs dried up several years ago when Manufacturers stopped making them.

And this is yet again, Your Opinion. In theaters, I have never seen a 3D movie that was worth the price of the ticket. IMO, it adds little to nothing to the experience. It is a gimmick that is designed to take money from the moviegoer's pocket and put it in the pocket of the movie producer/theater. It is simply one other aspect of seeing movies in theaters that fails to live up to the value promised.

I have rwo words for you, "Redbox". Oh wait, that's only one word. Never mind.

 

[wiyosaya]

The AMC theater in my area suffers from adjacent theater noise. Its sound system is one of the better ones, but the noise from adjacent theaters makes it not worth going there even with their reclining seats. I'd rather stay home. It is a much better experience.

 

[wiyosaya]

I have rwo words for you, "Redbox". Oh wait, that's only one word. Never mind.

One source I have been using, after getting a divorce from Redbox , is my local public library.

 

[captaincranky]

The AMC theater in my area suffers from adjacent theater noise. Its sound system is one of the better ones, but the noise from adjacent theaters makes it not worth going there even with their reclining seats. I'd rather stay home. It is a much better experience.

The whole concept of viewing source material via reflected light at extreme magnifications unnerves me.

To me, the theater experience has always hearkened back to the era of projection TVs, whereas you were trying to magnify 480i sources to 6 foot screens. Those things were ghastly, and the only reason I can think of owning one was to impress your neighbors.

In the case of film movies, the image was only half of the standard 24 x 36 mm camera frame, then expanded to 2:35 to 1:00, via anamorphic lenses. If it weren't for persistence of vision, the film grain would have been the size of boulders. Yuck!

 

[Endymio]

In the case of film movies, the image was only half of the standard 24 x 36 mm camera frame, then expanded to 2:35 to 1:00, via anamorphic lenses. If it weren't for persistence of vision, the film grain would have been the size of boulders. Yuck!

You know I can't let this pass. On 35mm film, the average silver grain size of half a micron displayed on even a 60-foot wide screen is only about a third of a millimeter -- a very small boulder indeed. And of course, for a films shot in 70mm formats, it's half that.

 

[ChrisH1]

A chance for The Buggles to release a new hit, "streaming killed the movie theatre".

 

[NicktheWVAHick]

I do t go to movie theaters anymore because I don’t want to get shot in the face in the dark. ‘Nuff said.

 

[wiyosaya]

The whole concept of viewing source material via reflected light at extreme magnifications unnerves me.

To me, the theater experience has always hearkened back to the era of projection TVs, whereas you were trying to magnify 480i sources to 6 foot screens. Those things were ghastly, and the only reason I can think of owning one was to impress your neighbors.

In the case of film movies, the image was only half of the standard 24 x 36 mm camera frame, then expanded to 2:35 to 1:00, via anamorphic lenses. If it weren't for persistence of vision, the film grain would have been the size of boulders. Yuck!

It's that whole "bigger is better" marketing tactic. Maybe for some things, but not for all of them.

I certainly remember those three tube projection TVs. Never owned one, though, nor did I ever view one in real life.

You know I can't let this pass. On 35mm film, the average silver grain size of half a micron displayed on even a 60-foot wide screen is only about a third of a millimeter -- a very small boulder indeed. And of course, for a films shot in 70mm formats, it's half that.

Having tried my hand at film based amateur astrophotography many years ago, when digital first came on the scene, there was a colleague of mine who used to tease me because, at the time, I told him I would stick with film. The resolution on 25 speed (ISO) is incredible. Even in this day and age, 25 speed (ISO) film has got even the highest megapixel sensors beat by far. Now, however, I would use a digital sensor of some sort, and stack the images. Ah some day, I fantasize about getting back to it especially since it can be automated and I would no longer have to sit in 10F weather and guide manually.

 

[Neatfeatguy]

In the past 13 years (before my wife was pregnant with our first kid) - that was the last time her and I visited a movie theater. The experience was awful - so many f'ing stupid rejects in other seats with their phones, talking or throwing things....why would I want to spend $30+ on two tickets and concession snacks for a shitty experience?

Since my kids have been born, I've been in a theater three times with them and three other times to see the John Wick movies. One kid movie I didn't even get to finish because the 4 year old was bored with the movie....him and I waited out in the lobby for the wife and daughter to finish viewing the movie. The other couple of movies....according to the kids, it was "okay" of an experience. They don't care about going to a theater. It's no loss for us if theaters went the way of the dodo. There's no sense in spending $80+ for tickets and concession if the kids don't want to be there.

I wait for movies to release on DVD/Blu-Ray and then I buy a copy of what I want. Once I have them in my possession I rip them to my Plex server. I've got 800+ movies, not to mention I've got about 3 dozen complete series of TV shows as well, all copied over to my Plex server.

I'm also entertained enough by stuff available to stream for free from Plex or Peacock. The kids enjoy Netflix more so than I do, so we keep that subscription. There's really no reason for us to go to the movies.

With the covid shutdown there was a long period of time nothing was in production for movies or dates kept getting pushed back more and more and....well, it sucks for the theaters because they're taking the biggest loss so I do feel for them. But they haven't offered me a service in the past decade plus that I would miss if they all closed up. I don't want spend money to see a movie in the theater with other people, that most likely will ruin the experience because of they're self entitled attitude (phone play, talking, throwing things, wandering up and down the aisle constantly, loud disruptive food eating or plastic bag crinkling.....eh, gross). No thanks, I'll keep my money and not be irritated by other people.

 

[Axiarus]

It sucks that everyone here has had bad experiences at AMC. The AMC I go to has amazing seats and screens and the employees watch for people on their phones and ask them to put them away. I don't go to the movies often. Only for really heavy hitters. Avengers and such. People can say good riddance all they want, but it will be sad if AMC goes under.

 

[captaincranky]

That's very true. There are "IMAX" screens that aren't much larger than a traditional screen, which show upconverted movies, rather than natively-filmed ones. Personally, I think IMAX hurts its brand by allowing these to be shown under the same name, as they're nothing like the true experience.

Basically, if you try to convert subjects filmed to be viewed on a flat screen to a round, what you wind up with amounts to the effect of a Mercator projection. That sounds possibly counter intuitive, but it's the same result that occurs when you try to make a flat map out of a globe, only in this case, inside out. (And it's a well known fact that Greenland is big, just not that big).

I read how true Imax was supposed to be done many years ago. (Feel free to correct me if I'm wrong). I thought it was filmed with 4, 70 mm cameras simultaneously, each covering one quadrant of the field of view. Way back then, the only Imax films were short subjects like underwater documentaries and such, basically esoterica. Either that, or it was fisheye lenses used, the perspective restored by projecting them back into a globe..

 

[Uncle Al]

Few, if any businesses were prepared for the affects of this Pandemic BUT the smarter companies always have advanced plans for dealing with worst case scenarios, which it appears AMC either forgot or just didn't bother to do. Contrary to popular thought, this is not an industry that is essential or necessary. Granted, it is highly desired by the TV and Movie watching public but it's loss will not have a huge impact on daily life. It will put a lot of people out of a job, but while AMC might disappear, their assets and operation will be bought out so the losses will be less than their total group.

The bottom line is that in business only the strong & prepared survive .... all others go by the wayside and there should be no further Federal or State assistance in this. The governments have a big enough task just trying to feed and house all the unemployed families ....