AMC multiplex cinema.
AMC Theaters, the largest movie chain in the US, and rival Cinemark have said they have no plans to close theaters even as more Hollywood blockbusters postpone their release dates next year.
Earlier on Tuesday, both chains said 80 percent of their U.S. locations are open to the public and will remain so despite the daunting headwinds.
AMC shares were up about 1
The announcement comes after Cineworld said Monday it would temporarily close all of its US and UK locations due to disappointing box office results and the postponement of films like “Black Widow”, “Wonder Woman 1984″ and ” No Time to Die “.
With 500 fewer screens in the US, Warner Bros. has postponed a series of its high-budget feature films, including “Dune”, “Batman” and its new film “The Matrix”.
Not to mention, theater chains like AMC are still waiting for New York and California to allow more theaters to reopen. Spikes in coronavirus cases in those states have led lawmakers to slow reopenings and impose high attendance limits for places that can reopen.
“Some of our best partners like Disney, with its long-awaited ‘Soul’, and Universal with ‘The Croods: A New Age’, have new films slated for theatrical release in the next month and a half,” said Adam Aron, CEO of AMC. in a statement.
While Universal’s sequel to “The Croods” may remain in theaters, due to the studio’s new video on-demand deal with AMC, it’s highly likely Disney will eradicate “Soul” from the calendar in favor of a later theatrical release. or a boost to their own streaming service, Disney +.
Cinema chains are looking for new ways to earn money during the pandemic. AMC struck a deal with Universal in July that allows Universal to play a movie for just 17 days in theaters before being authorized to distribute it on premium video on-demand. AMC achieves reduced revenue streams from PVOD sales.
The expectation is that Universal will tap into this deal with its second film “Croods,” due out for Thanksgiving. This would allow Universal to bring the film to the domestic market just before the winter holidays.
Cinemark, on the other hand, is relying on private theater rentals to increase revenue. Before the Covid-19 outbreak, renting a theater could cost anywhere from $ 250 to $ 500, depending on the size of the auditorium. Now, rentals cost between $ 99 and $ 175.
“Cinemark’s reopening plan has been designed with multiple contingencies in place to ensure that we are able to be agile and react as needed to this ever-changing environment,” the company said in a statement.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.