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AMC CEO Talks Movie Theater Reopening Plans: 'Monumental Step Forward'

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AMC CEO Talks Movie Theater Reopening Plans: 'Monumental Step Forward'

Liam Neeson's latest action flick "Honest Thief" was the best performing film at the box office with a measly $3.7 million in ticket sales. By comparison, the best performing film on the same weekend last year was "Maleficent" and collected $36.9 million in ticket sales.

AMC Reopening Plan: New York theaters outside of New York City will reopen on Oct. 23 and this represents a "monumental step forward," AMC Entertainment Holdings Inc (NYSE: AMC) CEO Adam Aron said on CNBC. As such, the movie industry has a greater chance of seeing blockbuster releases over the next three, six, and nine months.

"I think finally with New York open we can say our future is bright again," the CEO said.

The company is also renting out theaters.

"AMC Theatres joins a handful of cinemas letting customers rent out auditoriums for private screenings," according to CNN. "AMC allows rentals of up to 20 people... rates start at $99, excluding tax, and increase to $349 depending on the movie, the theater's location and any other add-ons like food and drink."

Related Link: After Regal, COVID-19 Forces AMC Theater Chain To Consider Bankruptcy: Report

Capacity Isn't The Problem: Theaters will be limited to 25% capacity in New York and this is in line with other states that limit theater capacity to 20% to 40%, he said. While this may seem notable, movie theaters "aren't typically full."

Put in perspective, AMC sold more tickets than any other cinema chain in the world in 2019 yet it only filled 17% of total seats, he said. As such, capacity isn't the problem for the industry, rather it is ensuring top quality content is released to the market.

"We have only had one major film release since March of 2020," he said. "That's going to change."

Traders cheered the news, as AMC's stock traded higher by nearly 20% to $3.67 at publication time. Cinemark Holdings, Inc. (NYSE: CNK) was also moving in sympathy, up 13% on the day

 

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