AMC Theaters says it'll go broke in January

[Skanky Vamp]

AMC Theaters reports it would require about $750 million to keep going beyond January.
Maybe it's a good idea there is an alternative way to watch all of the new WB movies in 2021 rather than relying on the cinema.

There are people lamenting that the Federal Government, ie, average joe citizen should bail them out. Bull. If the movie theaters want a bail-out don't go asking the government; ask Hollywood. I will be beyond pissed if the government bails them out.

 

[DeadlyDuo]

Maybe it's a good idea there is an alternative way to watch all of the new WB movies in 2021 rather than relying on the cinema.

It's because of WB's move to stream it's 2021 slate of movies concurrently on HBO Max alongside cinemas which is putting the cinemas at risk. The director of the new Dune movie has said that WB have killed the Dune franchise by pulling this stunt.

Cinemas survive by getting bums on seats. With all the fear mongering over Covid (whilst it is a serious situation, there's also a sense that certain aspects have been overexaggerated), people will have to be enticed back to public arenas such as cinemas and the like. By streaming their films on HBO Max, WB are using the pandemic to line their pockets and throwing cinemas under the bus.

Just imagine having to pay a monthly subscription fee just so you can watch a movie when it comes out rather than having to wait for DVD/Blu-ray because there are no cinemas where you can go see it by making a one off payment. Imagine that movie turns out not to be so good and you are now locked into a six month subscription contract or however subscription services work. Aren't they supposed to be a bugger to cancel?

 

[Skanky Vamp]

It's because of WB's move to stream it's 2021 slate of movies concurrently on HBO Max alongside cinemas which is putting the cinemas at risk.

That's a load of crap. Why was AMC constantly losing money long before HBO Max and long before the pandemic. A year ago, before any of that stuff, they were forecasting they only being able to survive another 3 - 4 years. They spent so much money on their "movie subscription" passes and they were an unmitigated failure. HBO Max is not why cinemas are failing and certainly not why AMC is going to fail. Don't believe everything you hear on the internet.

 

[DeadlyDuo]

That's a load of crap. Why was AMC constantly losing money long before HBO Max and long before the pandemic. A year ago, before any of that stuff, they were forecasting they only being able to survive another 3 - 4 years. They spent so much money on their "movie subscription" passes and they were an unmitigated failure. HBO Max is not why cinemas are failing and certainly not why AMC is going to fail. Don't believe everything you hear on the internet.

A year ago (before HBO Max and the pandemic) they forecasted they'd only be able to survive 3-4 years. One year later, they're now saying they'll go broke in 1 month which means that 3-4 year survival time has been cut by 75%. The pandemic is guilty for the majority of that, however WB is also hastening their demise by streaming their entire year of films on HBO Max, films which would've enticed people to the cinema, which means people no longer paying cinemas to go watch a film.

Regardless of whether you think streaming on HBO Max is a good idea or not, the point is that WB's move is going to put further pressure on already struggling cinemas and it is going to kill some off. There's a reason why directors are getting angry at WB about it.

 

[white avenger]

Its just the next step toward toward turning humanity into a bunch of total hermit crabs. We used to get out and mingle with our friends and neighbors. but now we just stay at home and curl up with our big screen TV and pretend that we still socialize. We don't talk face to face, we don't even speak to each other on the phone. We text, and even then we "h8 2 rly tak abt nytng real".

But don't mind me, I'm just in one of those moods lately, and it doesn't look too likely that the next 4 years are gonna get much better,

Now Texas is talking about secession again. Didn't we just fight a war over something like that back in the 1860's?

 

[Skanky Vamp]

films which would've enticed people to the cinema

I can't imagine that many people being enticed to flock to the movies next year. HBO Max has nothing to do with it.

Besides, they are talking about it in January. That again, isn't like missing a slate of WB movies caused that to happen; it was 2020 that caused it to happen.

 

[TriBel]

Cinemas have been on life support before...they'll have to adapt or die. I'm less concerned about the big chains (although it's unfortunate for the employees) than I am the small independents who offer an alternative to the mainstream.

We used to get out and mingle with our friends and neighbors. but now we just stay at home and curl up with our big screen TV and pretend that we still socialize. We don't talk face to face, we don't even speak to each other on the phone. We text, and even then we "h8 2 rly tak abt nytng real".

People probably said the same thing when landlines and television became popular. 🙂 It's social change driven by technology - nothing new. It's been happening since the Industrial Revolution. It's just that Covid has quickened the process. We tend to look back and get nostalgic at what went before (hence Texas's "return to the past").

 

[Mr Trick]

We'll see if it will come true. I find it hard to believe that the events of the last year would be enough to sink them alone. I think the future of cinemas maybe to screen more classic films or cult gems instead of newer releases. Also live TV premeres could be a good idea.

Should the Government bail them out? I would say only if they support smaller chains as well.

 

[Skanky Vamp]

I find it hard to believe that the events of the last year would be enough to sink them alone.

Why not? They aren't making money, they tried to stay open during the pandemic thus had to pay to remain open and keep food/snacks in stock as well as pay to license movies they were showing; additionally they continually had to pay rent and taxes on the land the theaters sit on as they neither own the land nor the buildings themselves. They had a massive amount of debt prior to 2020 and that has continued to increase. They are using their remaining liquidity to combat their cash burn all the while their stocks have been plummeting and their value keeps going down, which is why they are begging people to buy their stock. They say they need to sell 700 million dollars in stock by January to remain operational.

Back in August they agreed to bypass the traditional 90-day exclusivity with studios just to be able to get their films at a discounted rate. So they were paying for films that less than 20% of their original attendance numbers viewed. They were, in the simplest way possible, paying customers to come to their theaters.

Of course they have yet to announce (to my knowledge) any pay cuts or reduction of salary for their upper management, so during all of this they (presumably) were still getting paid as if everything were fine.

Many of the independent movie theaters are actually doing far better than the chains because they learned how to pivot their business.

 

[Mr Trick]

Why not? They aren't making money, they tried to stay open during the pandemic thus had to pay to remain open and keep food/snacks in stock as well as pay to license movies they were showing; additionally they continually had to pay rent and taxes on the land the theaters sit on as they neither own the land nor the buildings themselves. They had a massive amount of debt prior to 2020 and that has continued to increase. They are using their remaining liquidity to combat their cash burn all the while their stocks have been plummeting and their value keeps going down, which is why they are begging people to buy their stock. They say they need to sell 700 million dollars in stock by January to remain operational.

Back in August they agreed to bypass the traditional 90-day exclusivity with studios just to be able to get their films at a discounted rate. So they were paying for films that less than 20% of their original attendance numbers viewed. They were, in the simplest way possible, paying customers to come to their theaters.

Of course they have yet to announce (to my knowledge) any pay cuts or reduction of salary for their upper management, so during all of this they (presumably) were still getting paid as if everything were fine.

Many of the independent movie theaters are actually doing far better than the chains because they learned how to pivot their business.

So based on that there are other factors to their downfall than what happened this year. Which is what I said.

 

[HowiMetdaSlayer]

Kind of wonder why the movie companies/corporations don't just own most the theaters outright.

 

[AlphaFoxtrot]

Bail out? Well, I would think the Bankruptcy judge would be understanding, and try to give the company favorable terms to hold it together until the recovery begins. But no, no bail out.

 

[Mr Trick]

BTW it is worth pointing out that a lot of good hard working people on the smaller end of these companies will lose their jobs if this comes to pass. People make want to think about that before snearing at the thought of a big cinema chain going under.

@HowiMetdaSlayer My worry if that happens is the consumer might get even less choice at the cinemas than they do now. There might be a push to show just the blockbusters deemed to make the most money. Could be wrong of course.

 

[Skanky Vamp]

So based on that there are other factors to their downfall than what happened this year. Which is what I said.

Yet if 2020 never happened they would still be in business.

it is worth pointing out that a lot of good hard working people on the smaller end of these companies will lose their jobs if this comes to pass.

A lot of good hard working people in a lot of industries, many of them small business owners and/or entrepreneurs lost their jobs and life savings because of the shutdowns. That's why people were so adamant against them.

 

[Joan the Vampire Slayer]

Sadly, I'm not surprised. But I thought that AMC may survive.
Covid has all but destroyed the arts industry. Many, many organizations will not survive this.

What's funny is how much I took for granted going to the movies, seeing a play, or seeing a band before.

 

[ILLYRIAN]

I wonder, the people who are on top of running the theatre group, have they gone broke? Chances are the writing was on the wall that so much money was being lost, so why was it allowed to get to so much?

 

[ILLYRIAN]

Sorry Joan the Vampire Slayer,
I thought the AMC was the only group being spoken of.

 

[TriBel]

I'm not sure about the US but, in relation to the UK, I think the Arts sector is buggered. We have Brexit on top of Covid and, politics aside and irrespective of how crap/useless/corrupt (delete as appropriate) I think the Tories are, the financial strain means there'll be little Government support for things deemed non-essential. The big institutions that speak to sovereignty and national identity will be saved but everything else (i.e. outside London) will wither and die. Sidebar: the Arts (not including Film/TV industries) brings in more money and employs more people than Fishing does but fishing is our Government's main preoccupation at the moment.🙄

 

[Skanky Vamp]

the Arts (not including Film/TV industries) brings in more money and employs more people than Fishing does but fishing is our Government's main preoccupation at the moment.🙄

Really? There must be alternative reasons. Something smells... no, that's too easy.

 

[TriBel]

Really? There must be alternative reasons. Something smells... no, that's too easy.

With the fish? I think it's become a "mine is bigger than yours" issue with the EU (and I'm not talking quotas). We do still have people employed in fishing and associated industries but their importance and their numbers have dwindled over time. TBH, I think it's more about symbolism than about concern for fishing communities and families (and I have a lot of sympathy for them). We're an island race (there's nowhere in the UK that's more than 70 miles from the coast) and, as our unofficial, national anthem tells us "Britannia rules the waves". One of the earliest Grierson documentaries was "The Drifters" (about fishing). Historically, we've had huge successes on the water (Trafalgar, the Spanish Armada, various battles in WW1&2) - all against nations who were EU allies (we don't seem to play well with close neighbours...and possibly vice versa). Of course, we have to obliterate the Cod Wars from memory (IIRC it's 3-0 to Iceland) but I didn't understand that anymore than I do the present situation. So...I kinda understand the government's priorities, though I don't agree with them. It smacks to me of nostalgia. Meh...we're an old country with too much history...

As regards the Arts. Not sure about the US but here the Arts, particularly on the fringe, tend to be associated with liberals or left wing values rather than conservative ones...hence the recent (maybe not so recent attacks) on the BBC. I've been watching CNN (and some FOX recently) and, if I'm honest, IMO the BBC (for all its problems) is far more neutral than either of these.