Even Frodo can’t save AMC’s stock now
Something big but familiar is happening IMAX (NYSE: IMAX) this weekend, and AMC Entertainment Holdings (NYSE: AMC) hopes for “valuable” rewards. The Lord of the Rings: The Fellowship of the Ring will debut on the larger-than-life film platform on Friday. The other two entries of Peter Jackson’s the Lord of the Rings The trilogy will follow later this month.
It’s been 20 years since what is now AT&T‘s (NYSE: T) Warner Bros. released the first of three blockbuster films, reportedly grossing over $ 2.9 billion in worldwide ticket sales. The trilogy never exploded in the IMAX format, but recent 4K remasters of Jackson’s films make it possible. The timing is lousy, of course. Most fans of the series will be hesitant to visit what should be a socially remote but still crowded cinema. However, it’s the bad timing that makes this possible. With the big movie studios pushing back the release dates for their new IMAX releases, there just isn’t a trickle of healthy content for AMC and its little rivals to play on their most lucrative screens. It’s a smart move, but it probably won’t be enough to save the industry.
You can’t pass
AMC is in trouble. Despite the recent wave of trading activity in equities, it is still a company that runs a nonprofit that was faltering even before the pandemic. Income growth was stable in 2019 despite a string of killer releases, including the latest installments from the Star wars and Avengers trilogies. Last year was going to be a disappointment even before the COVID-19 crisis hit.
It wasn’t until the end of the summer season that the AMC finally reopened, but people aren’t coming back. Analysts see an 89% drop in fourth-quarter revenue that the multiplex operator will announce in a few weeks, and that’s with the lion’s share of its theaters open.
The appeal of a classic trilogy making its long-awaited premiere on IMAX is evident. The movies have been loved by critics and audiences alike, and they all have the action, fantasy, and high-tech effects that tend to work well on IMAX. Even with theaters offering screenings at a slight discount compared to typical new releases, it will still make a difference. The problem is that many smaller AMC sites do not have an IMAX display. It will also be a very limited race. You only have a week to watch the first entry before the other two films in the trilogy follow.
AMC is doing what it can to stay afloat. He has Money collected — then even more money – to make sure he can keep his spotlights warm for the next cold months of money-consuming. Unlike its closest rival, Regal, which temporarily closed all of its theaters late last year, AMC continues to pop the popcorn and scan digital tickets to keep the art form alive. . It improved its game with new seat reservation technology and increased its mobile dealership ordering options beyond the initial pilot locations. The channel also got off to a smart start offering private rentals for as little as $ 99 per screening to make people feel comfortable with the experience again.
AMC has done a lot of things wrong over the years, but now it seems to be doing everything right. The problem is, he’s not the only one to dictate his fate. the media actions which it relies on to make the content appear to perfectly embrace digital distribution alongside theatrical releases. AT&T is throwing a bone to the industry with this remastered IMAX trilogy, but it’s also the same company that is releasing all of its new 2021 releases on HBO Max at the same time those movies hit the local multiplex.
Customers have also become more comfortable with their home theaters, especially with falling prices for high definition screens and easily accessible upgraded audio systems. Frodo Baggins and his team have done some amazing things that will play out on IMAX for the first time over the next couple of weeks, but too many people are comfortable revisiting the franchise from the comfort of their own homes. AMC must bear a greater burden than Frodo if he is to save his world.
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