AMC Theatres May Fully Deplete Cash by January

[RandySF]

The cinema chain explained that it has completed a debt offering of $100 million from the Mudrick Capital Management investment firm, after having already deferred more than $400 million of rent commitments to 2021. However, executives estimated that the company will require at least $750 million in additional liquidity to survive during the ongoing coronavirus (COVID-19) pandemic.

AMC added that the delay of multiple blockbuster releases this year, as well as the decision for these films to be released simultaneously on streaming services, has caused major roadblocks. Specifically, AMC noted, "These challenges have been exacerbated by the announcement by Warner Bros. that its entire studio film slate for 2021 will move to simultaneous release, which may result in other studios adopting a similar strategy."

As previously reported, Warner Bros. made the decision to release their entire 2021 slate -- which consists of 17 new films -- in theaters and on HBO Max at the same time. This roster includes highly-anticipated projects such as Dune, The Matrix and In the Heights.

Warner Bros. first hinted that this decision was inevitable after deciding to debut Wonder Woman 1984 on HBO Max on Christmas Day, after the film opens in international film markets beginning on Dec. 16. After debuting the live-action version of Mulan on Disney+ this fall, Disney also recently announced that its anticipated animated movie Raya and the Last Dragon will premiere on its streaming service for a premium price on the same day it opens in theaters in Spring 2021.


https://www.cbr.com/amc-theatres-may-deplete-cash-by-january/

[PSPS]

1. Hate to break it to AMC, but you better start looking for new jobs. Theaters aren't coming back.

They have been in decline for over twenty years and were definitely doomed when streaming became ubiquitous. It may have taken another ten years for theaters to be completely dead but the pandemic sped everything up and it happened this year.

[alwaysinasnit]

2. +1000

[RandySF]

5. It's still a shame

I really enjoyed our local AMC.

[Towlie]

9. Pause button, fast forward, instant replay, volume control, subcaptions...

 
←

private rest room, no noisy kids or annoying strangers, clean and comfortable seat, temperature control, all of the comforts of home because you are home.

Did I forget anything?

Edit: Yes I did. Theater versions are time-limited to maximize theater income by allowing time for multiple showings during an evening. Director's cut versions are as long as the director needs to tell the story.

[BannonsLiver]

24. Eh

Directors cuts aren’t all they’re cracked up to be. Most of them are shit.

[RKP5637]

12. Yep, it's been coming on for some time, writings been on the wall! Many people have been

forced to explore alternatives and might like them better.

[Initech]

19. They will. This pandemic won't last forever.

If AMC goes under someone will pick up the assets when it's safe to go to movie theaters again.

[BannonsLiver]

22. Nah. They'll be back.

By the way your narrative is false. The business had actually been fairly steady over the last 20 years.

https://m.the-numbers.com/market/

[StarfishSaver]

54. There's something nice about the communal experience of moviegoing

Home streaming has its value and advantages, but there's nothing like going to a movie theatre.

[Demsrule86]

26. That makes me sad. Dinner and a movie were always things hubs and I enjoyed on date night.

[Doodley]

47. That is simply not true. Box office sales were 5.3 billion in 1995 and 12 billion in 2018.

https://www.the-numbers.com/market/

[Meowmee]

55. This is true

One near us was struggling already for a few years before this and was horrible to go to, always dirty etc and trouble with sound/ projection.

[SWBTATTReg]

3. They're still around? Hmmmm...

[USALiberal]

7. What does that mean? Nt

[former9thward]

16. People on internet discussion boards like to show they are above the unwashed masses

by pretending they don't know anything about the subject of the OP.

"McDonalds? They still exist?" "What's a Walmart?" etc.

[MissB]

17. It could also be that the poster

can’t afford to plunk down almost $50 to see a movie with a spouse/partner/friend

[former9thward]

20. More likely they are far, far beyond their teenage, 20s years.

The prime audience for movie theaters. In that age group people want to be away from their parents and older people. They are more than willing to shell out some discretionary income for that privilege.

[Demsrule86]

27. There are great deals out there...well before the pandemic. Hubs and I paid around

$15.00 bucks for our tickets. That is a national pastime that brought folks together and I think it is sad. Warner Brothers ought to watch out...not much of a reason to pay what they charge can just wait until it is out.

[Mariana]

31. If that were true, the poster would probably say something like

"No great loss for me, I never went there anyway." This poster is pretending not to know that AMC theaters even exist.

[Demsrule86]

28. I do too. The issue is in the winter...don't know that those few months are enough of course

some don't live in Ohio and the other Northern places.

[SleeplessinSoCal]

6. They may turn into churches for a while.

Then back to theaters, as demand - like during the great depression - for entertainment will be colossal.

[Klaralven]

13. There's demand for entertainment

Where you don't have to organize an occasion, drive to a theater, find parking, walk in, hang about a lobby buying overpriced refreshments, use a public restroom, go through ticket taking, find a seat (depending on whether assigned or not), and sit through 20 minutes of coming attractions and PSAs.

[JI7]

8. They need to change their business concept. Maybe add in some stores

Things like Disney stores and other things that sell movie related crap.

With fewer people watching movies convert some of the theater space into this shopping.

Charge less for the movies and try to make more on the other things they sell.

[Klaralven]

14. The US already has about four times the retail square footage per person of other developed countrys

There is no need for more, especially since many of the theaters are already in malls that are suffering.

[JI7]

39. That's why they need to sell the experience similar to apple store

[JI7]

48. I'm talking about how retail can survive. We saw how Sears and Kmart started looking like

outdated disorganized warehouses with large empty spaces .

JCPenny was also killed with bad management.

[Demsrule86]

29. Retail shopping is in terrible shape.

[TexasBushwhacker]

45. Most of the ticket money goes to the studios

The first few weeks of a release, about 80% of the box office goes to the studios. That's why theaters have to charge so much for concessions. That's what pays the bills.

[JI7]

50. That's why my idea to sell overpriced crap is a good idea

[TexasBushwhacker]

53. We have the Alamo Drafthouse in Texas and there are

a few around the country. They serve alcohol and real food, as well popcorn and the usual movie snacks. In addition to Hollywood fair, they show classics, foreign films and theme nights like showing a spaghetti western and serving all the spaghetti you can eat.

[frazzled]

10. Well, cinema had a pretty nice run

125 Years. I think this will be the death of public, communal consumption of films. (Do we still call them films, since so many no longer use film anymore?)

Except for the art and revival houses. They will definitely come back. But it’s really kind of sad overall.

[Dagstead Bumwood]

15. It is sad.

I guess I'm a bit mystified by those dancing on the graves of movie theaters. Sure, it's expensive, the floors are sticky and you can't escape the assholes displaying bright screens in a darkened theater. But, since I was a teen I have attended movies religiously. I always walk in with this sense of wonder, ready to immerse myself in a film.

Our local art house seems to be hanging on, which is a blessing, but our Regal googleplex sits dark. Things have definitely changed, and not for the better, IMHO. And, if the studios (with their new business model) think I'm shelling out $30 for the privilege of seeing Mulan on my own couch then they're out of their damn minds.

[MustLoveBeagles]

18. There's nothing like seeing a movie on the big screen

Yes some people can be rude jackasses but overall I enjoyed the experience. An era is coming to an end and it's too bad it had to happen this way. I think it would be a great idea to bring back drive in theaters as an alternative like another poster suggested. The only bad point I see with this is how would this work in certain states during Winter.

[TexasBushwhacker]

49. Yup. Big screen in a darkened theater with a great sound system

It can't be beat. For those that consider a night at the movies too expensive, I would ask where can you get 2 hours of entertainment, usually with free parking, for less money? Pro sports? A concert? No way.

[Demsrule86]

30. I love going to movies...that is how I feel. I have not rented on of these to the TV Screen

movies. Part of the enjoyment was going to the movies. And Teens went.Where can a 16 year old go out? Are we all supposed to sit in our houses for the rest of our lives.

[Lancero]

43. What happens to the movie theatres in that case?

No power to the theatre, no power to run the projector to show the movie.

Then again, if we suffer a complete grid collapse I suspect we'll have more important things to worry about besides not being able to watch the latest movies.

[Mariana]

35. The experience sure isn't what it used to be.

Once upon a time, you shut up while the movie was playing, or they kicked your ass out. Now they just crank up the volume to painful levels so you can hear it over the folks who jabber away at full volume. Idiots play with their phones without darkening them and it's very distracting. I really don't enjoy going to movie theaters anymore. There's one exception, there's a drive-in still open a about a half hour away, and I like to go there when the weather's nice.

[Indykatie]

11. Why Would Anyone Invest 100s of Millions in a Business Model Being Decimated By Several Factors

like technology, movie creators shifting focus to home entertainment models and people's growing reluctance to be in crowded theaters/venues with COVID still a thing probably for years to come.

[exboyfil]

21. 2019 saw $11.5B box office

and that doesn't include the concessions that keep theaters operating.

Theaters offer an opportunity for a communal experience. They are also one of the cheapest opportunities to experience entertainment as a couple or a group friends. See Chris Rock's quote:

"I don’t think movies are dead. I think Noah is absolutely right that studios want ten hours of something. But never underestimate that movies are part of a mating ritual. That’s just what humans do. We go to movies. And it’s still the most affordable part of the mating ritual that there is. It’s cheaper than going to any sports game, it’s cheaper than theater. People need to get out of the house and that hasn’t been replaced. So I don’t think movies are going anywhere."

Maybe most people on this board don't appreciate big dollar epics or science fiction/fantasy/action/comic book movies, but those will go away if the theater model goes away. The Warner decision to drop on streaming the same day as box office release for Dune means the follow up movie will have a 1/3rd of the budget most likely.

[RandySF]

25. Avengers: Endgame + Rise of Skywalker

[BannonsLiver]

33. Well said

Especially the first sentence of your last paragraph. This thread is a great example of a classic Doomer pile on wherein if the first couple of responses are Doomer the rest usually follow.

I can remember back in March when people were saying Disney World would be closed forever.

I don’t particularly like the fact DW is open, but alas, the demand is there.

[BannonsLiver]

23. I'll be going back after I'm vaccinated

Just like most people in the thread.

[Demsrule86]

32. I look forward to going back.

[Florida Bull]

34. This is sad!

I like going to the movie theater. I can immerse myself in the movie, in a way I cannot on a smartphone screen or even living room tv. It’s relaxing and feels good. I also only watch one or two movies a month. I don’t want to subscribe to 6 or more streaming platforms to watch one movie a month.

Another concern for me, is it provides people in the local community with jobs.

[Dagstead Bumwood]

58. Another good point in favor of theaters.

If I'm at home there are just too many distractions. Once I leave the house and pay for admission to the theater, I am locked into that movie. No phones, no laptop, no nothing distracting me from the movie.

[doc03]

44. The last time I went to a movie theater was about a year ago. They had the volume turned up as loud

as it could go I think. The AC was so cold it was like a meat locker. The restroom stalls were covered with graffiti and one of the urinals
was broke off the wall one of the others was leaking directly on the floor. The concession prices are ridiculous. This was way before the pandemic. The malls and Walmart killed downtown theaters. Back when we had downtown shopping we had several theaters all in beautiful well maintained facilities now we go the mega mall theaters that are dumps.

[dsc]

56. I haven't been to a theater in quite some time due to COVID

but I do miss going to the occasional film and/or festival. I just watch my local Outfest (LGBT festival) at home. Movies were great but no one to discuss them with. And, watching the likes of Wonder Woman 1984 at home just won't be the same.

[Beaverhausen]

57. I still love going to theaters

I love the whole experience. Especially when I can reserve my seat beforehand.

Of course I live in Los Angeles where we are blessed with a very large number of good theaters, especially the Arclight chain.

I can’t wait to go to a theater again.

[Raine]

59. Covid or not I doubt I will ever go back to a movie theater

now I wonder how clean they ever were and figure I was always at risk for picking up something. Plus I prefer the comfort of home, no noisy people, no expensive refreshments, can stop and start movies for breaks etc.