What's happened
Starting July 1, AMC Theatres will introduce an additional commercial before movies, as part of a deal with National CineMedia. This move aims to boost revenue without raising ticket prices, following a trend set by competitors like Regal and Cinemark. Audience reactions have been mixed.
What's behind the headline?
Revenue Recovery Strategy
- AMC's decision to add more ads reflects a broader trend in the cinema industry, where chains are seeking alternative revenue streams post-pandemic.
- The introduction of a 'platinum spot' for ads indicates a shift in AMC's strategy, prioritizing financial recovery over customer experience.
- Competitors like Regal and Cinemark have not seen attendance drops despite similar ad practices, suggesting that audiences may be adapting to longer pre-show times.
Audience Reaction
- Many moviegoers express frustration over the increasing length of pre-show ads, with some stating they will arrive later to avoid them.
- The backlash on social media highlights a potential disconnect between AMC's revenue strategies and customer satisfaction.
Future Implications
- If AMC's ad strategy proves successful, it may set a precedent for further commercialization of the moviegoing experience, potentially alienating traditional audiences.
- The long-term impact on attendance and customer loyalty remains to be seen, as AMC navigates this new advertising landscape.
What the papers say
According to the New York Times, AMC's new ad strategy is a significant shift from its previous stance, which rejected similar proposals in 2019 due to concerns about alienating moviegoers. The article notes, 'AMC suggested it was prepared to receive some backlash,' indicating awareness of potential customer dissatisfaction. Meanwhile, Business Insider UK emphasizes that AMC's competitors have successfully integrated ads without impacting attendance, stating, 'This is a strong indication that this NCM pre-show initiative does not negatively influence moviegoing habits.' The NY Post captures audience sentiment, with one user commenting, 'How could they possibly run more?' This highlights the tension between AMC's financial needs and customer expectations.
How we got here
AMC Theatres has historically resisted adding more advertisements before films, fearing it would deter moviegoers. However, with declining revenues and attendance post-pandemic, the chain is now following competitors who have successfully integrated ads into their pre-show routines.
Go deeper
- What are the audience reactions to AMC's new ad policy?
- How will this affect ticket prices in the future?
- What are other cinema chains doing about advertising?
Common question
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What Changes Are Coming to AMC Theatres' Advertising Strategy?
AMC Theatres is set to introduce a new advertising strategy starting July 1, which will add an extra commercial before movies. This decision marks a significant shift from their previous stance against more ads, raising questions about audience reactions and the overall movie-going experience.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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AMC Entertainment Holdings, Inc. is an American movie theater chain headquartered in Leawood, Kansas, and the largest movie theater chain in the world.