The world’s largest movie theater chain continues to shrink, announcing additional cinema closures to come as movie lovers attend fewer and fewer showings.
AMC has already closed 213 locations over the last several years, shrinking its total number of theaters by more than 20 percent, from over 1,000 to approximately 860 across the globe, with only 65 new locations established in the same period of time. This week, CFO Sean Goodman announced the anticipated closure of additional “underperforming locations” while speaking on the company's financial earnings call, as reported by Fast Company.
While the exact number of closing locations has not yet been confirmed, Goodman noted that approximately ten percent of AMC's properties are eligible for lease renewal every year, allowing for rental negotiations or cancellations. It sounds like minimal new locations are also planned, but the areas for those upcoming establishments have also bot been revealed.
The company pointed to stiff competition from streaming services like Netflix, which airs original feature films right there in the comfort of the viewer's own home, as well as fewer films that appeal to the larger population, in combination with higher ticket prices, as just some of the reasons for declining revenue.
Recent Marketing Schemes Couldn't Save the Doomed Theater Locations
Clearly, the "incredible value" of the brand's recently updated loyalty perks and expanded range of discount days were not enough to cultivate the necessary foot traffic for the brand to thrive—and the addition of general advertisements ahead of feature film screenings didn't bring in enough revenue to make up the difference.
Every industry is feeling the pressure of decreased consumer spending, with popular pizza joint Papa John's just announcing the closure of hundreds of stores across the country this week, and Pizza Hut making similar moves earlier this month.
Wendy’s is also on track to close hundreds of locations, while grocery and gaming staples are also feeling the heat of shifting shopping habits, illustrating consumer prioritization of not only more affordable necessities, but less expensive entertainment, too.
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