AMC Theaters Unlikely to Survive the Movie Theater Shut Down
 

We all know that movie theaters have been hurting since they were forced to close down over the coronavirus pandemic. There was also a fear that some movie theaters might not be able to make it out of this alive. It looks like one of the big movie theater chains is sweating it, and according to The Wrap, they are unlikely to survive.

It’s reported that AMC Entertainment's credit rating has been downgraded from a 'B' to 'CCC-,' and what that means is that "Default imminent, with little prospect for recovery." Analyst S&P Global confirms:

"We expect AMC Entertainment Holdings Inc.’s (AMC) theaters will remain closed beyond June due to the impact of the global coronavirus pandemic. We do not believe AMC has sufficient sources of liquidity to cover its expected negative cash flows past mid-summer."

AMC is in major debut as it reported a $5+ billion deficit at the end of 2019 and losses of $149 million. The analysts continued:

"While unlikely, we could raise the rating if AMC were able to secure additional liquidity without further burdening its capital structure and if we expected the company would be able to generate substantial cash flow in 2021. This would likely require conclusive knowledge about the length of the theater closures and a view that the box office would return to normalized levels in 2021."


https://geektyrant.com/news/amc-thea...ater-shut-down

I wonder why. People would be flocking to theaters once everyone is allowed to go back outside again.

From a human perspective, it's ashame because there are jobs at play. But also consider that there are more P/T "High School" jobs at AMC than there are people paying mortgages by working there.

With that said, from a competitive stand point, AMC deserves to die on the vine anyway. The chain has been surpassed completely by other theaters such as Brew 'n Views (like Studio Movie Grill) or successful local theaters that offer food and enhanced theater rooms like Naperville, IL's Hollywood Palms which has each showroom decorated according to a theme (i.e., one room is Egyptian with a life sized ark of the covenant while another has life sized Iron Man, Batman, etc).

The point is that AMC was dying from their business practices and pricing. I'd expect the current climate could hasten the process, but that chain was being selected out by movie goers through voting dollars anyway.

Actually the company has been having some really good days at the Stock Market this week. Monday was especially GREAT.

Showbiz Stocks Surge From Theater Chains To Broadcasters On Glimmer Of Market Hope Pandemic Is Running Its Course

I also read this yesterday.

AMC Theatres Bankruptcy Rumors Grow, But That Move Wouldn’t Be The End Of The Chain Or The Biz

Actually? :roll: Context is king, dude. Jesus, did you even read your article?

AMC sucks. The main point of the article isn't that it's doing well... hahaha Jesus. It's that AMC could benefit from their inevitable bankruptcy through restructuring, which is a function of bankruptcy. Your cited source also actually says that the death of AMC isn't also the death of theaters, which is actually also what I said above. That article basically says that AMC inevitable downsizing might help the company. Which is true of any company dying on the vine.

And as for your first article, lmao again :roll:. Dude, having a whopping 25% increase isn't that hard when your share price is only $3.30 a share..

Actually...

:lol::roll:

I really hope they don't shut down completely. I been going to this same theater for many many years. I would hate to lose it since its the only theater that was close enough.

Personally I wouldn't mind this, as long as it doesn't mean theaters tanking overall. I've never liked AMC for a multitude of nitpicky reasons, they're my least favorite theater chain.

Unfortunately, if they're going away then I fear for the rest of the bunch.

Oddly enough I never particularly cared for like a specific theater per say. I'm in it for the movie, the food and the chance to hang out with the gang. Sure, some theaters might have reclining seats or other might offer unlimited popcorn, but in the end the only factor for me is convenience of location, not so much the actual name of the theater chain.

The theater I been going to went through different owners.

It started out as United Artist Theater, Then became Muvico Theater, Then got owned by Carmike Cinema. Then Carmike Cinema got bought by AMC Theaters.

The company's shares are now showing a spike following plans to reopen the economy.

AMC Issues $500M In Debt To Stay Liquid; Shares Spike On U.S. Reopening Plan

The company has now been upgraded from "Sell" to "Neutral". Plus, "Bankruptcy risk appears to have subsided.”

https://deadline.com/2020/05/amc-ent...ed-1202944170/

AMC shares were at a low of a buck ninety five, but are now hovering at 5.35. It's great that their leadership actually developed a plan, but their share price bounced on the fact that an investing group put all sorts of money into the company - which is good.

But surviving the fallout after being saved by investors and credit deals is different then surviving by market competition. It's impressive that they bought themselves maybe two to three years, but I'm most interested in seeing if they can do big things to make AMC a theater where people want to be again.

Nah, you don't have to worry. The resurgence of "novelty theaters" that offer real menus and dinner with leather recliners and other amenities have kept the theater experience fresh. AMC needs to adapt now that they've taken in investor money.

SOME of the AMCs out here have the leather recliners, at least.

Regal? They all have those. And a ridiculously large menu of food.

They could certainly use this during these times.

AMC Entertainment Nears Debt Deal That Would Ensure Solvency Into Early Next Year

They just completed their debt restructuring.

https://comicbook.com/movies/news/am...restructuring/

I feel bad for the theaters, mainly because of the jobs people are losing because of them. I know I personally would rather go to a theater to watch a movie than to sit at home and watch one, unless it's an older film...not something newly released that I may have an interest in. I like the atmosphere of the theater, but I also feel that I'm in the minority in that regard who still prefers this medium of entertainment.

I generally don't buy the snacks, though since I usually do dinner and a movie. So I'd get something to eat either before or after the movie (usually after). I might get a drink or something, though.

Wish everything could go back to semi-normal at least across the board. I miss seeing movies in an actual theater and sad that Ghostbusters was pushed back along with other films I had an interest in seeing.

Don't worry, it will all go away after the election.

:tlol: Yeah, pretty much. Every 4 years SOMETHING hits the fan.

https://i.pinimg.com/originals/31/2a...be9c500b05.gif

AMC Theatres Could Run Out of Cash by the End of 2020, Early 2021

The current model has been horrible, hope theaters die and something that makes sense for the 2020s takes over.

My best friends & I live miles away from each other. The theaters have always been more convenient places to meet at than our houses.

I think that evolution already began about ten years ago as traditional theaters like AMC have been dying a slow death for years. They get propped up for another round with seasonal injections from big releases and spillover from other sold out theaters, but they've been trending down against brew 'n views from free market choice for a long time.

If I had to guess the theaters that will be left standing will be the mom and pop brew 'n views that have custom rooms, attractions and food. A rare turn of events where smaller entrepreneurs might surpass a corporate chain, but I'm all for it. Especially in the case of a place like AMC.

Of course. Why wouldn't they? Studios have completely abandoned them and nobody is helping them out.

Yes, theaters have been dying for years, stuff like 3D movies, VIP etc have inflated prices of the box office but ticket numbers have been down for a long time now.
https://www.cnbc.com/2020/10/12/disn...-consumer.html
Disney is focusing on streaming for their future, cinemas will continue to be a niche product but I think that will also make them more special. I hope they come up with cool things to make it worhtwhile. Cheaper pricing, choose your own movie, a better experience, rent a whole room for a few friends, adapt, play whatever you want on their even your home made movies, I don't know.

The best part of COVID 19 is it accelerated the death of many dying industries and instigated the adoptance of new technologies.

I won't miss theaters.We're living in the digital age. Why do I have to go out to a crowded theater with screaming kids and noisy people commenting next to you on the film when you can watch from the quiet secluded area of your own home? Not to mention you can pause the movie if you have to go to the bathroom instead of holding it in or missing something if you have to run out to the bathroom.

You mean to tell me you have a 30-foot screen in your NY apartment?

Watching Interstellar on a 72" flatscreen TV just does not compare.

If he has a VR headset then yes he can re-create that.

Nerds and shut-ins apparently don't give a sh*t about stuff like that. Their preferred choice of movie-viewing experience is directly connected to how easily it allows them to avoid people. So of course they'd cheerlead for a bunch of things to shut down and tons of people to lose their jobs while in the long run providing an objectively worse and less-fun experience for everyone. What matters is that they get to watch stuff on the toilet at 1.5 speed or hit the pause button to go drunkenly masturbate.

Truly, a future worth aiming for.

Here were the tendencies before the pandemic started:


Movie theaters will continue to exist in one way or another but the traditional cinema experience has outlasted its appeal for the majority of consumers. Boomers can yell at clouds tho.

https://www.indiewire.com/2020/10/di...st-1234592280/

Still:

https://mrwgifs.com/wp-content/uploa...erland-Gif.gif

Then there's this.

AMC Entertainment May File For Bankruptcy For Real As Reopening Stalls

https://thumbs.gfycat.com/AntiqueClu...restricted.gif

The man comes through with a visual aid to what I said in #23! Bam! My man!

Sure it does - if the room is in proper proportion to the selected T.V. size. And the truth is that while I'm a movie nerd and love the theater, I've never seen a theater screen as well calibrated and finely detailed as my T.V. at home. There's always a translation error in the theater - a sizing issue that removes some fine detail, a brightness calibration issue, an expensive sound system that has no effect in the theater for some reason. Now if theaters widely did their job and kept their **** calibrated then it would be different. But they don't do it. They just pump out showings for the cash grab without pride in their art. And blanket statement or not I'd say that's like... seriously man, like 99% of theaters out there.

This might be its only saving grace right now.

Could Universal-AMC’s Early VOD Deal End Up Helping Struggling Theaters?

Actually it would be one helluva power play if AMC abandoned theaters and suddenly came out as some kind of absolute game changer streaming service.....
That's what I would propose if I were on the board there.

If I was AMC I would completely liquidate all assets and build a bunch of mask-making and hand sanitizer factories. For all the fear virtue people. That's where the only money is now -- selling people back their own fear.

I'm just curious. I don't know how often you normally go to the theater but if they were operating as normal with release dates unchanged were you gonna go see all these movies during all this?

I've mentioned I hardly go to the theater. It has to be something I absolutely need to see. Like I said I don't mind wearing masks but having to be extra careful just for a movie is not worth it imo.

I mean aside from the risk of getting sick its just too much work and defeats the purpose of enjoying a movie is what I'm saying.

I would not have gone to see Sonic under this situation or Ghostbusters.

I'd go to the theaters weekly, bi-weekly. Longer if no good movies playing.

No problem going to the theater now. I'm willing to trust that the theaters are taking reasonable measures to be "safe." Now, I'm aware not everyone would do this... what I'm suggesting is that when a movie comes out, some combination of maybe exclusive release in the theaters that are open now for 3 weeks (incenticizing reopenings), THEN on week 4 the Mulan VOD model. Everybody wins.

cancelled my A-List so I'm not missing much.

AndrewNDB,

Quicker VOD release would be a good way to ease things back to normal but like you said not all studios want to do that because it probably does lose some profit. $20 for a temporary rental is a lot. In theaters people are mostly paying for the novelty of a giant screen and the experience. Movies already hit home release faster than they used to.

I appreciate the extra measures businesses are taking but let’s be realistic about this part. Nobody can keep up this level sanitation 100% of the time. Too many people and things to account for and some don’t care to be begin with. Even when things are normal many public places do not get the attention they need. Public restrooms especially.

Stuff like theaters where people often leave junk and massive theme parks would need an army of sanitation people following everyone around. It’s just not humanly possible to meet this level of demand for these kinds of places.

At most I’d say it’s probably 50% effective. Which is good and should continue but not enough to return to normal activity.

Not "some profit." There really isn't anything to suggest that the Mulan model was even profitable at all. As soon as a movie is released digitally (whether it is VOD, Netflix, CBS On Demand)... an hour later it is on every pirating torrent site out there. I'd be surprised if Mulan made even 15% of what it would have made if it came out in theaters in February.

What I'm saying is that at least if there's some exclusivity with the theaters for a while, there's the money to be had. Before going VOD where many good people will pay the $20 or whatever to rent or "own" it.... but many more will not. They will be on Piratebay.

Well. I may not be afraid of the virus... but I'm not stupid, either. I'll make sure I can hold it. And maybe not get the jumbo pop for a while.

Of course it is. And it's happening everyday in theaters. Maybe it takes them an hour to clean a theater between showings instead of 30 minutes... so what?

Also, total number of cases of COVID stemming from theaters? 0. Not even 1.