Cinema chain AMC warns it may not survive the pandemic

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AMC, the largest movie theater chain in the U.S., warns that it may not survive the pandemic. It's the latest danger sign for the theater business in North America.

FILE - In this April 29, 2020 file photo, a message on the ticket window at the AMC Burbank 16 movie theaters complex informs potential customers that it is currently closed in Burbank, Calif. AMC says its business is suffering because of the coronavirus pandemic and it may not survive. All of the company’s theaters are shut down through June, and while the theaters are closed the company is generating no revenue.

Movie theater chain AMC warned Wednesday that it may not survive the coronavirus pandemic, which has shuttered its theaters and led film studios to explore releasing more movies directly to viewers over the internet.in North America, which was under pressure even before the pandemic. It has gotten a boost by raising ticket prices and revamping theater-going into a more luxurious experience with drinks and meals, but admissions have been gradually declining since 2005.

“Due to these factors, substantial doubt exists about our ability to continue as a going concern for a reasonable period of time,” AMC wrote in a regulatory filing. The publicly traded company, controlled by Chinese conglomerate Dalian Wanda, has 1,000 theaters in the U.S. and Europe. The company also said it would stay in the black even if local governments only allow it to sell half of its seats to keep customers separated, which the company expects governments will allow for most places in the U.S. by mid-July. Cinemark CEO Mark Zoradi said that even “below that level,” the chain’s theaters can be “very, very profitable.”

 

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Surprised it hasn’t happened before this with the sheer number of flops coming out of Hollywood in the past 5 years.

Ok...? People are not surviving the pandemic. What’s your point?

osuphantom Good- release everything to streaming platforms at let me buy/watch in the comfort of my home.

But I wanted to use my next mortgage payment to buy a small popcorn.

ConnorBehrens This is a great opportunity to get some small business cinemas!

Hard to survive when you are not allowed to do anything

This industry has needed some severe disruption for decades. It's looking like a great time to reboot the world with new ideas on how to do lots of things to enrich the world and our society instead of a few corporations and some actors.

Sad...

Regal/Cineworld and Cinemark may not surive either. The only chain that could survive is National Amusements, and only because they own ViacomCBS

You know what, I like the idea of mom and pop, hometown theaters coming back.

Drive-ins in the parking lots would be a solution.

destined to happen. Too much competition from streaming and other forms of entertainment.

In a time when a movie ticket costs more than a month of streaming services at home, AMC’s demise was always destined. Another “Sad but a True” ending to an era.

Maybe AMC can learn to code

Always felt like I was in a big plastic bubble machine every time I went to the movies. And everything was for kids and teens. My ears and eyes hurt just thinking about all the bright colors and noise. We do need to save movie theaters but AMC was pretty bad.

pdacosta It's time to bring back drive-in theaters.

You must. You shall.

So, first they drop all Universal Studios movies because Universal had success with direct home streaming, but now they're saying money is bad and they might fold up shop? Maybe reconsider some business practices...

capitalism ftw

Where will I get $20.00 hot dogs?

damn.

Hope it trickles to the over paid celebrities losing jobs too. Just sayin

It was a dying business model years before this.

I thought big comlamies like this would survive since they have more profits than the little chains, but i think this was inedible since less and less people go to theaters unless its for any big superhero or scifi film. I feel bad for the employees that’ll lose their jobs

i would much rather sit at home and watch new releases than pay for for overpriced theatre tix and overpriced popcorn anyways

So they go bankrupt, someone buys the assets cheap & reopens. That’s exactly what corporations do. I’m more concerned for the employees & actual small businesses.

Hey I bet the stock tanked on this news and could be bought at a steal as a buy and hold on the chance they recov- *sees the stock is up from its opening price* .......Oh that’s right the stock market is a Ponzi scheme now.

amc is own by China

The Chinese billionaires who own AMC will be just fine. It’s the employees I feel bad for.

AMC is owned by China.

Maybe if they didn't charge $60 for a tub of popcorn I'd have sympathy for them. Home streaming sites are the future.. theaters are like block buster.

Good. I rather watch at my house.

I love going to the movies & I like amc theaters, but not having income really affects my fun.

Maybe they will stop charging $24 for a ticket

Oh no...now Hollywood won't be able to show how anything good that happens in the world is thanks to the USA USA USA!!!!!

whoa.

Maybe don't charge $8.50 for a small popcorn from now on

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