AMC Theatres' CEO Adam Aron suggested that prices could start rising when the largest theater chain opens their doors for the first time since the Coronavirus pandemic forced multiplexes around the country to shutter. Since theaters closed in March, AMC has continually made headlines about the future of the company, including talk of possible bankruptcy or the idea of selling to a major corporation like Amazon. For now, they plan full steam ahead and hope to open their theaters later this month.
Like most businesses, AMC has suffered a devastating financial loss since closures started. Aron recently reported a loss of over half a billion dollars. AMC has been trying to restructure their business model in order to keep doors open, even if it means changing the exhibition landscape. AMC previously stated they wouldn't show Universal Pictures' movies, after the studio decided to put Trolls World Tour on premium VOD for $20, with the intent to release more movies on demand. Universal claimed this was a successful experiment for them, but AMC vowed not to show their movies due to abandoning the theatrical window. AMC recently reversed their stance, deciding to screen the studio's movies and allow them to make their products available after a 17-day theatrical window. Now, it looks like AMC may be making another change that will directly impact moviegoers' wallets.
According to Variety, another way AMC is likely to salvage their lost revenue is to raise prices on tickets and concessions. Aron linked this looming decision to the cost of new safety procedures and obtaining the equipment necessary to do extra cleaning in between shows. He cited the costs of new safety implementations will be expensive and have to be "passed on to the consumer."
Moviegoers are anxious to return to theaters, but the goalpost continues to move further and further back. Ultimately, it's for the best as movie theaters try to find the synergy between operating safely and effectively from a business standpoint. Some theaters around the country have opened, as well in other parts of the world, but the virus continues to spike, which is pushing opening dates back for both theaters and studios releasing movies.
As theaters like AMC continue to find ways to operate in a changing landscape, their policies will have to continue to evolve. Whether less daily showtimes or higher prices, the way audiences go to the movies will have to alter as well. Hopefully, theater chains will be able to open their doors again when the green light is given, but safety must remain the top priority.
More: When US Movie Theaters Will Reopen
Source: Variety
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August 09, 2020 at 07:27AM
