Movie theatres will now invest $2.2 billion in massive upgrades over a span of three years to drive moviegoers out of their homes.
Movie theaters such as AMC Entertainment, Regal, and Cinemark are aiming to provide a more ‘premium’ movie experience.
North American movie exhibitors are planning to invest $2.2 billion in theater upgrades over the next three years, aiming to capitalize on the resurgence of Hollywood’s box office this year.
The National Association of Theatre Owners (NATO) announced this significant investment on Thursday, highlighting the ongoing efforts to attract audiences back to cinemas after successful releases like Inside Out 2, Deadpool & Wolverine, Bad Boys: Ride or Die, It Ends With Us, and Despicable Me 4.
NATO president and CEO Michael O’Leary noted the fierce competition for consumers’ spending, stating, “Movie fans of all ages love heading to the local theatre to see great movies on the big screen.
But the competition for their hard-earned dollars is fiercer than ever.”
This investment is seen as a response to the challenges posed by streaming services that have changed viewing habits, reports Hollywood Reporter.
The planned upgrades come as the exhibition industry aims to overcome lingering effects from the pandemic and recent strikes, with a steady lineup of major films expected through 2025.
O’Leary emphasized the importance of creating memorable experiences for moviegoers, saying, “Going to the theatre is an unparalleled entertainment experience, and this investment reflects that commitment in a tangible way that every moviegoer will see and enjoy.”
The funding will be distributed among eight cinema chains, including AMC Entertainment, Regal Cinemas, Cinemark, Cineplex, Marcus Theatres, B&B Theatres, Harkins Theatres, and Santikos Entertainment.
Collectively, these chains operate over 21,000 screens and account for more than two-thirds of the North American box office.
The upgrades will focus on enhancing the viewing experience with laser projection technology, immersive sound systems, improved food and beverage options, and even adding amenities like arcades and bowling.
Additionally, theaters will see improvements in air conditioning, lighting, signage, and carpeting.
As the industry continues to rebound, these enhancements are designed to ensure that patrons enjoy the best possible experience when they choose to visit their local theaters.
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Other Market News Today
AMC’s short interest has now doubled this year-to-date, signaling sellers have begun to participate in the prominent ‘meme stock’ again.
Last year, sources reported AMC’s short interest at 7.80% — today, Fintel is reporting the short interest at 15.09%, nearly double.
AMC Entertainment (NYSE:AMC) stock closed down 2.22% on Monday with shares falling more than 20% this year-to-date.
This year the S&P Global raised AMC’s rating to CCC from SD — selective default — but says the company is ‘unsustainable’.
Despite the company’s tough critics hammering the business down, the box office continues to hit it big.
For example, Beetlejuice earned a whopping $150 million worldwide and more than $117 million in domestic revenue during its opening weekend, per IMDB.
The highly anticipated sequel to Tim Burton’s original film, “Beetlejuice Beetlejuice,” has achieved an impressive opening weekend, ranking as the third-best of the year, trailing only behind major hits “Inside Out 2” and “Deadpool & Wolverine.”
Estimated ticket sales for the weekend (Friday through Sunday) at U.S. and Canadian theaters were as follows:
- “Beetlejuice Beetlejuice” – $110 million
- “Deadpool & Wolverine” – $7.2 million
- “Reagan” – $5.2 million
- “Alien: Romulus” – $3.9 million
- “It Ends With Us” – $3.8 million
- “The Forge” – $2.9 million
- “Twisters” – $2.3 million
- “Blink Twice” – $2.1 million
- “The Greatest of All Time” – $2 million
- “Despicable Me 4” – $1.8 million
- Final domestic figures will be released on Monday.
While the company may have its challenges, it has also recovered significantly from where it once stood.
Combined with the massive support from its loyal fan base and investors, AMC Entertainment seems to have no problems keeping up.
The “box office is making a come back”, said Adam Aron during the Q2 earnings call.
AMC Entertainment was able to secure $770 million in cash equivalents and expressed their optimism moving forward.
So, why is AMC’s short interest going up again?
The company stock continues to be shorted — Fintel is currently reporting more than 1 million short shares were available on Monday.
What does this mean for the investor?
Is it too early to call another short squeeze?
Only time will tell — and I’ll certainly be keeping an eye out on the data and looking at the stock’s performance and trends.
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- NEW WITH AMC: AMC Entertainment Now Appoints A New Director of The Company
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