AMC Entertainment Gets $1bn Boost in Movie Titles from Apple
AMC Entertainment (NYSE:AMC) will finally get a boost in new movie titles as Apple prepares to spend $1 billion per year in theatrical releases.
CEO Adam Aron has said on a few occasions that AMC Entertainment’s potential is essentially capped by the number of titles being released each year.
AMC Entertainment is the largest movie theatre chain in the world.
It was able to survive the pandemic and remain the industry leader after millions of investors saved the company from bankruptcy when the company stock was purchased en masse to squeeze short sellers.
The company was able to raise billions of dollars and continues to raise hundreds of millions today as it makes way for profitability again.
Apple’s investment is part of the tech company’s efforts to raise its profile in Hollywood and lure subscribers to its streaming service, Apple TV+, Bloomberg reported, citing people familiar with the matter.
Apple has released films directly to its streaming platform or allowed limited runs in a small number of theaters for Academy Award eligibility.
The commitment to longer theatrical releases is a way for the company to appease talent, who want their projects on the big screen, and drum up awareness for its streaming platform, which is estimated to have between 20 million and 40 million users, much smaller than rivals Netflix and Disney +.
But Apple isn’t the only big company contributing to the movie theatre industry.
Amazon to Contribute $1bn Annually to Movie Theatre Industry
In November of 2022, Bloomberg reported that Amazon was also planning to invest $1 billion per year in the movie theatre industry, aiming to release anywhere between 12-15 movie titles per year.
That number of releases puts Amazon on par with major studios such as Paramount Pictures.
Now, Amazon Studios has its first-ever original movie debuting in theatres globally on April 5th, 2023.
AIR tells the story of the game-changing partnership between Nike and a then-rookie named Michael Jordan.
This is the largest commitment to the movie theatre industry by an internet company, says Bloomberg.
CNBC commented:
“While a $1 billion annual investment for film development is on the lower end of what major Hollywood studios spend each year, it’s a positive sign for the movie theater business, which has struggled in the wake of the pandemic.”
The Wall Street narrative that the movie theatres are dead no longer seem to hold weight.
And the rumors of Amazon going into the movie theatre industry are no longer rumors.
Apple joining the movie theatre industry seems to only reinforce and secure the future of AMC Entertainment.
Movie Theatres Are Essential for The Entertainment Industry
Big leaders in the entertainment industry have realized that they require the theatrical experience to grow their businesses.
There was an incident with Netflix where the company missed out on more than $200 million from taking Glass Onion: A Knives Out Mystery starring Daniel Craig out from the movie theatres too early.
The film earned $15 million at the box office but CNBC says the showing could have made $200 million if it had been kept in theatres longer.
Box office analysts say Glass Onion could have earned much higher earnings if Netflix had opted for a traditional wide release of 2,000 to 4,000 theaters.
CNBC stated, “Netflix has backtracked on its previous policies, including by introducing an ad-supported subscription option, leading many to wonder whether the company should rethink its resistance to the traditional Hollywood movie release model as it looks for new ways to grow revenue.“
Amazon and Apple’s move to invest billions of dollars in the movie theatre industry is going to be a game changer for AMC Entertainment, as well as other cinemas in the industry.
But I’m curious to hear your thoughts on what’s happening today with AMC.
Leave a comment down below and share this story.
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Sounds like good news for my favorite movie theater company. And bad news for the people dumb enough to still be betting on it to fail. Sorry, jerks! I cant wait to see them all jump ship, or should I say TRY to, when diamond handed apes won’t sell their shares……
Leave your thoughts below!