Heartbreak not feelin' so good… AMC said yesterday that it would close the curtain on its streaming service. Launched in 2019, AMC Theatres on Demand let users rent or buy movies to watch at home. The platform likely came in handy during the pandemic when theaters were closed, but now AMC says it's focused on "making movies better by enhancing the theatrical experience."
If you can’t join ’em… beat ’em. US movie chains are charging ahead to deck out the in-theater experience, since butts-in-seats still bring in more $$ than couchbound streams. In addition to dropping top dollar on new IMAX screens (cost: $1M, not including install), theaters are splurging on plush-grades like heated seats that move with on-screen action, fans who blast viewers during chase scenes, and on-call dinner servers. In February, AMC even rolled out tiered seat pricing (picture: paying extra for center row). The premiumization push seems to be paying off:
Seat-side sushi: Theaters are charging up to 65% more for tickets in fancified theaters, easily topping $20 apiece.
More from less: Upgraded screens are expected to bring in 17% of theaters’ revenue this year, up from 9% in 2019.
Some pain, some gain: AMC’s losses are shrinking ($178M last quarter versus $266M a year earlier).
Experiences command a premium… After the streaming surge and lockdowns knocked theaters on their heels, chains are trying a luxury-driven comeback. The US box office hit $7.5B last year (up from $2.3B in 2020), and could top $9B this year. Meanwhile, studios like Warner Bros. and Disney have cooled on plans to release films straight to streaming as cineplexes draw more customers off the couch and into heated, reclining theater thrones.