The business model for movie theaters, especially major chains like AMC, Cinemark, and Regal, faces significant challenges due to changing consumer habits. Research indicates that 63% of Americans prefer watching movies at home. This trend has worsened with competition from various media, including streaming services and video games. In response, theater chains have adopted creativity to maintain revenue, such as luxury seating and extended preshow advertisements. Cinemark and Regal's partnership with National CineMedia for added commercials is a significant shift, followed by AMC's recent alignment with this strategy. This change aims to generate vital revenue but raises concerns about audience retention.
"According to Octane Seating, 63% of Americans watch movies at home, which isn't happy news for big chains such as AMC, Cinemark, and Regal."
"Popular movie chains have been forced to get creative to stay afloat. Tactics such as luxury reclining chairs and top-shelf alcohol haven't been enough."
"On July 1, AMC joined Cinemark and Regal to add additional commercials in the preshow slot, emphasizing the change in a disclaimer for ticket buyers."
"National CineMedia CEO Tom Lesinski promised that this would not deter audiences, as a similar practice was already standard in Europe."
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