AMC Theaters CEO Adam Aron suggests fares and incentives may have to be increased to meet the costly cost of cleaning up the expensive Coronavirus.
AMC Theaters CEO Adam Aron suggests that prices could start to rise as the biggest theater chain opens for the first time since the Coronavirus pandemic forced movie theaters across the country to close. Since theaters closed in March, AMC has consistently made headlines about the company̵7;s future, including talking about the possibility of bankruptcy or the idea of selling to a large corporation like Amazon. For now, they have fully planned it in advance and hope to hit theaters later this month.
Like most businesses, AMC has suffered serious financial losses since it started shutting down. Aron recently reported losses of more than half a billion dollars. AMC has been trying to restructure their business model to keep the doors open, even if that means changing the exhibition landscape. AMC had previously stated that it would not show Universal Pictures’ films, after the studio decided to show them World Devil on premium VOD for $ 20, with the aim of releasing more movies on demand. Universal claims this was a successful experiment for them, but AMC vowed not to show their movies due to the removal of the window. AMC recently reversed their stance, deciding to show their studio films and allowing them to deliver their products 17 days into the cinema. Now, it looks like AMC may be making another change that will directly affect moviegoers’ wallets.
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Based on DiversityAnother way AMC can save their lost sales is by raising fares and franchising. Aron linked this vague decision to the cost of new safety procedures and the purchase of equipment needed for extra cleaning between gigs. The cost of implementing new safety, he said, would be very expensive and must “transmitted to consumers.“
The audience is anxious to return to the theater, but the milestone continues to recede further and further. Ultimately, that’s for the best when theaters try to find the synergy between safe and efficient operations from a business standpoint. Several theaters across the country have opened their doors, as in other parts of the world, but the virus continues to spike, which is pushing back on opening dates for both theaters and movie studios.
As theaters like AMC continue to find ways to operate in the changing landscape, their policies will have to continue to evolve. Whether the daily show schedule is less or the price is higher, the way the audience comes to see the movie will have to change. Hopefully theatrical chains will be able to reopen with the green light, but safety must still be on top.
See also: When US cinemas reopen
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