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(MovieWeb)   AMC Theaters Re-Opening plan: We keep our Overhead low and pass the expenses onto You, the Customer, in order to Maximize Profit   (movieweb.com) divider line
    More: Facepalm, Movie theater, AMC Theatres, The Walt Disney Company, Walt Disney, AMC Theaters CEO Adam Aron, much different stance, Walt Disney Company, Film  
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1053 clicks; posted to Business » on 12 Aug 2020 at 8:18 AM (15 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



Voting Results (Smartest)
View Voting Results: Smartest and Funniest

 
2020-08-12 9:09:04 AM  
8 votes:
Yes, makes perfect sense.  Theater tickets are already fairly pricey, and no one with two brain cells to rub together will go sit in a crowded room for two hours *during a pandemic*.  Let's raise costs, and make our customer base even smaller!
 
2020-08-12 3:30:27 AM  
7 votes:
I can see the few remaining drive-in theaters (maybe) making a temporary come back.
 
2020-08-12 9:19:05 AM  
6 votes:
Demand is low.

Business execs: raise prices!  That'll bring the customers back.
 
2020-08-12 8:28:54 AM  
6 votes:
LOL, what movies are we going to go see?
 
2020-08-12 10:36:44 AM  
5 votes:
Theaters are barely able to make ends meet, and they only really do so through concession sales.  I'm fine with them charging whatever they need to in order to stay in business.

If that price is too high, that means their business model is dead.
 
2020-08-12 10:31:27 AM  
5 votes:

jake3988: thornhill: FTFA:

It's clear that there are many, many people out there anxiously waiting for theaters to open again, so even with increased prices at AMC, the company shouldn't have too much trouble filling their seats once their doors are back open. This news comes to us from Variety.

Really? While I believe that people want new movie releases, I can't imagine that many care if they see them first in a theater vs. their home.

Yeah, people already hated going to the theatres (though, personally, most of the reasons are overblown.  I've never once had loud/annoying/insensitive people in the theatre like so many others and the awesome spaced-out comfortable reclining seats they all have now are great) and now throw a pandemic in the mix and no one cares anymore.

Which is sad, because the theatre experience is great, but there's a lot of movies that really benefit from it.

Course, I don't understand why certain movies ever are released to the theatre.  Big budget Nolan or Marvel films (I hate the latter, but I can imagine they benefit from a theatre experience) are great.  Why low-budget indy films insist on being released to theatres makes no sense.  I have no desire to see that type of movie in the theatre.  It doesn't benefit.  And based on how much money they make, everyone agrees with me.


The real question you are asking is why film makers create low-budget Indy films instead of only making Nolan or Marvel films.
 
2020-08-12 9:25:22 AM  
5 votes:

FuManchu7: Demand is low.

Business execs: raise prices!  That'll bring the customers back.


It's like what Cleveland did a few years ago:

Cleveland Water:  Water bill too high, her are some tips on how to save water!

Cleveland:  <saves water>

Cleveland Water:  We're not making enough revenue so we are raising the water rates.
 
2020-08-12 11:02:46 AM  
3 votes:
Less than zero desire.

Movie theatres are screwed for the time being.

Studios can still make & release stuff for screening.

This'll be seriously disruptive. I'm not sure it'll go back wholely to the pre-Covid business model.
 
2020-08-12 9:45:37 AM  
3 votes:
FTFA:

It's clear that there are many, many people out there anxiously waiting for theaters to open again, so even with increased prices at AMC, the company shouldn't have too much trouble filling their seats once their doors are back open. This news comes to us from Variety.

Really? While I believe that people want new movie releases, I can't imagine that many care if they see them first in a theater vs. their home.
 
2020-08-12 8:51:37 AM  
3 votes:

Driver: I can see the few remaining drive-in theaters (maybe) making a temporary come back.


Drive Ins have been packed for months. It's been mostly blockbuster reruns (Jaws, Raiders of the Lost Ark) and it's great.
 
2020-08-12 8:25:17 AM  
3 votes:

Thrakkorzog: They lost 500 million in 3 months?  Seems excessive.


Two, possibly three, tubs of popcorn and a large coke will cover that after they open.
 
2020-08-12 12:22:10 PM  
2 votes:

mcreadyblue: The money is in exchange for AMC to show Universal films. Previously, AMC said they would not show Universal films with a short theatrical window.


I understand where it came from, but I have no idea why Universal agreed in the first place. AMC needs Universal far more than the other way around; I'm pretty sure Comcast is not going to be hurting for money anytime in the near or far future, and already has the infrastructure for their own streaming services, and so can do the same thing Disney is doing with Mulan. I can see maybe negotiating 3-5% of revenue simply as a peace offering, but 20%?
 
2020-08-12 11:09:27 AM  
2 votes:
As a part of the deal, Univeral movies will play in theaters before being made available on home media after 17 days. At that time, AMC Theaters will receive 20 percent of the home media sales revenue. According to Aron, it's likely that AMC's competitors will follow suit with similar movie release plans.

So... AMC thinks it deserves to have part of the home media sales? Because... why? I'm pretty sure AMC isn't doing anything to improve my home viewing experience.

Also, they think this agreement will become standard? If all of the chains do that, especially at 20% each, then that's going to take a huge chunk out of the revenue, which means that the rental/purchase is going to be even more expensive than it is now.
 
2020-08-12 8:19:07 PM  
1 vote:

Jormungandr: Driver: I can see the few remaining drive-in theaters (maybe) making a temporary come back.

You could do the same with fast food... Combine them! Get your burgers and fries, then go watch a movie. Socially distanced, and supporting local businesses, and you're out of the house, which for some people is a requirement.


That's what we did a few months ago. Drove from Philly to Allentown to catch a Goonies/Raiders double feature. Sat in the back, ate popcorn and had an absolute blast. Much better than going to the theater.
 
kab
2020-08-12 4:43:16 PM  
1 vote:
You could lower ticket prices to $1 and I still wouldn't go.
 
2020-08-12 4:29:39 PM  
1 vote:
"The management regrets that it will not be showing a film this evening as it eats into the profits."
 
2020-08-12 4:23:11 PM  
1 vote:

almandot: Joe_diGriz: mcreadyblue: The money is in exchange for AMC to show Universal films. Previously, AMC said they would not show Universal films with a short theatrical window.

I understand where it came from, but I have no idea why Universal agreed in the first place. AMC needs Universal far more than the other way around; I'm pretty sure Comcast is not going to be hurting for money anytime in the near or far future, and already has the infrastructure for their own streaming services, and so can do the same thing Disney is doing with Mulan. I can see maybe negotiating 3-5% of revenue simply as a peace offering, but 20%?

No idea what the actual numbers are but I always remembered hearing that theaters kept around 30% of the box office for opening week and it ticked upwards to 40, 50% over the life of the release. Giving them 20% at first might be a steep discount for the studios while they evaluate how the streaming releases do and how much they still give a fark about the movie being in theaters at the same time.


Years ago this was true. Now for an expected blockbuster it's more like 0% for the first two weeks.
 
2020-08-12 11:51:57 AM  
1 vote:

Joe_diGriz: As a part of the deal, Univeral movies will play in theaters before being made available on home media after 17 days. At that time, AMC Theaters will receive 20 percent of the home media sales revenue. According to Aron, it's likely that AMC's competitors will follow suit with similar movie release plans.

So... AMC thinks it deserves to have part of the home media sales? Because... why? I'm pretty sure AMC isn't doing anything to improve my home viewing experience.

Also, they think this agreement will become standard? If all of the chains do that, especially at 20% each, then that's going to take a huge chunk out of the revenue, which means that the rental/purchase is going to be even more expensive than it is now.


The money is in exchange for AMC to show Universal films. Previously, AMC said they would not show Universal films with a short theatrical window.
 
2020-08-12 10:55:10 AM  
1 vote:
Pretty much as i expected to be honest. Mind by in the large the increase in ticket prices will do little for the theater as the studios take most of that, the increase in concession prices is where they will see the biggest increase  in revenue, provided of course the higher prices do not drive even more people into sneaking snacks in to avoid said high prices.
 
2020-08-12 10:12:07 AM  
1 vote:

thornhill: FTFA:

It's clear that there are many, many people out there anxiously waiting for theaters to open again, so even with increased prices at AMC, the company shouldn't have too much trouble filling their seats once their doors are back open. This news comes to us from Variety.

Really? While I believe that people want new movie releases, I can't imagine that many care if they see them first in a theater vs. their home.


Yeah, people already hated going to the theatres (though, personally, most of the reasons are overblown.  I've never once had loud/annoying/insensitive people in the theatre like so many others and the awesome spaced-out comfortable reclining seats they all have now are great) and now throw a pandemic in the mix and no one cares anymore.

Which is sad, because the theatre experience is great, but there's a lot of movies that really benefit from it.

Course, I don't understand why certain movies ever are released to the theatre.  Big budget Nolan or Marvel films (I hate the latter, but I can imagine they benefit from a theatre experience) are great.  Why low-budget indy films insist on being released to theatres makes no sense.  I have no desire to see that type of movie in the theatre.  It doesn't benefit.  And based on how much money they make, everyone agrees with me.
 
2020-08-12 9:33:46 AM  
1 vote:
Quit reading after the second misspelled word that would have been caught by a spellchecker.
 
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