Not really the model is fine, people will pay to go to a movie... and overpay for snacks and drinks.. but when you are highly leveraged as most businesses are, and you lose most of your revenues for an extended period of time... that debt eats you alive quickly.
What may change is business and investors willingness to carry huge debt loads in exchange for short term profits.. not likely though... eventually greed will prevail.
Chinese owned, let them die
OH NO!!!
Just kidding.
This is very sad. Very sad indeed.
I haven’t gone to movies in years and now I still won’t be able to go see the crap they put out. Bummer.
that it has “substantial doubt” it can remain in business “
Close your business for 3 months and...oh who the hell even cares anymore...
Morons.
I wouldn’t notice.
The model has to evolve.
It would not surprise me if some drive-in movie operations start to pop up (certainly not in urbanized areas).
I think the mega pictures with 100-million of investment money....will be cut in half for the future.
Amazon wants AMC on the cheap...
they want to control distribution of their competitors’ content, plus make their movies eligible for the Oscars, etc.
I have those films on either bluray or 4K.With my nice setup I can sit in my easy chair...with family and friends...and watch them,rewind them,pause them (bathroom breaks) and activate closed captions when needed.
Why would I possibly want to visit a theater featuring $10 containers of popcorn,sticky floors,people coughing and sneezing,etc,etc?
Why would I *ever* do so?
The article does not mention that the company was purchased by Wanda Group, a Communist Chinese company.
AMC is spending $250 million per month just on rents and Wanda Group may not be able to bail them out. A bailout would require Wanda to move money from China to the US which the CCP may not allow because Chinese companies are suffering.
AMC has $4.9 billion in debt.
There is nothing wrong with the model or AMC. AMC is a victim. First, they are a victim of the Covid-19 debacle. Next, they are a victim of Hollywood and their over inflated opinion of what they are worth. Then, AMC is a victim of the garbage that Hollywood it foisting upon them and calling it entertainment. The last movie that my wife and I went to see was American Sniper. It was so filled with foul language that it was all we could do to sit through it. That movie could have been made without a single foul word in it and it would have projected the same message to the viewing audience. This is why it is years between movies for us. Trash is never attractive to anyone.
The next few months will be peppered with stories like this. Businesses that were already even close to struggling before the lockdown are now as good as dead. The exceptions would be companies that actually benefit from this thing, like Zoom.
We are in the eye of the storm. Next side will be economic, ignoring these ephemeral riots based, really, on the lockdown.
2.4 BILLION! My gosh! That’s like 100 large bags of popcornwith with another 100 medium sized Cokes.
Hollywood could care less as long as they can sell their filth elsewhere.
UBI for all the unemployed
Senseless rioting and looting for everyone.
Hope the "muh Amazon" folks are OK with this.
Those of us who have made independent feature motion pictures cannot exhibit them in these chain theaters even though some of us have made good films.
America might be able to watch better movies in a theater but Hollywood has held the theater chains hostage. The exhibition fees demanded by Hollywood have left theater chains with only their food concession stands as a source of profit.
I have no sympathy for these theater chains who became slaves of Hollywood. Let them disappear.
AMC recently announced it would no longer show movies from Universal Pictures. I am sure that will help their bottom line.