AMC Theaters "Default Imminent With Little Prospect for Recovery" - AVS Forum | Home Theater Discussions And Reviews
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post #1 of 112 Old 04-06-2020, 12:27 PM - Thread Starter
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AMC Theaters "Default Imminent With Little Prospect for Recovery"

Movieweb.com has an article discussing how AMC's credit has been downgraded to CCC- which stands for "Default imminent, with little prospect for recovery."

According to the article, AMC— the largest theater chain in North America—has taken drastic steps to attempt to survive the closure of its movie theaters. These include executives taking pay cuts as well as the company furloughing 600 employees.

Read the original article here: AMC Theatres May Never Recover and Shut Down for Good
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post #2 of 112 Old 04-13-2020, 08:14 AM
 
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This is an unfortunate side effect of the pandemic. I’m afraid that there will be many more. Business has a lot of risk but it must be so frustrating for business owners to be blind sided and taken out by something like this.
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post #3 of 112 Old 04-17-2020, 06:13 AM
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I am torn. I hate seeing business go under....and how it effects everyone involved. ....but....I haven't been to a theater since I built my home theater (going on 5 years) =P
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post #4 of 112 Old 04-19-2020, 05:05 PM
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Even without the Coronavirus, this would have eventually come. Everything is about streaming now.
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post #5 of 112 Old 04-20-2020, 09:13 AM
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Originally Posted by FIUFSU1 View Post
Even without the Coronavirus, this would have eventually come. Everything is about streaming now.
And discs released three months after theater run.
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post #6 of 112 Old 04-20-2020, 02:14 PM
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I wonder how that will affect the movie studio's? I wonder how that might impact the audio/video industry as a whole.

My personal feelings are that my home theater is likely as good as my local theater. We just watched "Trolls World Tour" last night for $19.99 and for a family of four thats half of what a trip to the movie theater would cost - not even getting into candy and popcorn.
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post #7 of 112 Old 04-22-2020, 10:51 AM
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Quote:
Originally Posted by RafaelSmith View Post
I am torn. I hate seeing business go under....and how it effects everyone involved. ....but....I haven't been to a theater since I built my home theater (going on 5 years) =P
Like you, I don't want to see people lose their jobs.

And while I still go to the movie theater, I would gladly pay what I pay to go to the movies to watch new ones at my home. So I am torn on this.

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post #8 of 112 Old 04-26-2020, 03:44 PM
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I'm sad about this as I remember movie theaters fondly but on the other hand there may be good deals on projectors in the future.

Sad lots of folks may loose jobs.

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post #9 of 112 Old 04-26-2020, 06:21 PM
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Curious to see how these recent direct-releases (premium VOD) go for Universal (Trolls) and Warner Bros. (SCOOB!). This may accelerate an industry shift.
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post #10 of 112 Old 05-02-2020, 12:04 PM
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Originally Posted by FIUFSU1 View Post
Even without the Coronavirus, this would have eventually come. Everything is about streaming now.
I am more into physical media now and relax better knowing I"m not using the bandwidth in the home network that my kids need for online learning.

Like others I was also an user at a movie theater years ago. In my case it was AMC with 7 or 8 theaters. I might miss them .... a little. I own a theater now which is nice.

I don't think people will rush back to theaters.

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post #11 of 112 Old 05-13-2020, 07:43 AM
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Originally Posted by FIUFSU1 View Post
Even without the Coronavirus, this would have eventually come. Everything is about streaming now.
I completely agree, as for me, theaters need a major technological breakthrough: years ago we went to the cinema for the sake of a beautiful picture and high-quality sound, then for the sake of 3D and better quality. But now I can watch movies and TV shows in 3D with high-quality sound in the company of friends in my basement! So why should I pay the theater too?..
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post #12 of 112 Old 05-13-2020, 02:29 PM
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Well, let's see.

I can watch a movie on disc or by streaming at home, or........

I can go to a theater with a bunch of poorly-raised miscreants never taught the most basic of manners and listen to them babble the whole movie. All while half the theater spends most of the movie with their phones lit up in their faces on instagram and facebook.

Hmmmm, what to do?

But this is unfortunate. Now that the pandemic has become largely political, we could see the end of movies, concerts, sporting events......

I'm not sure this world will ever recover from this.

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post #13 of 112 Old 05-15-2020, 12:04 AM
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I'm not sure how much of their revenue people who only went for the supposed quality of Dolby Cinema and IMAX "premium" presentations made up for, but they even ended up alienating this group. I have a nice TV & sound at home, but went to AMC pretty much solely for Dolby/IMAX. I am close enough to arguably one of the best IMAX theaters in the US, even one that can still do 15/70, the Universal CityWalk IMAX. But then they ruined it. Used to go to another, closer Dolby Cinema theatre, then started noticing double images due to miscalibration. That's lasted for years now and AFAIK never fixed. It's just not a consistent good experience, regardless of whether there are annoying people or not. Even the "premium" presentations don't guarantee it, and even disappoint more cause they're so expensive.
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post #14 of 112 Old 05-15-2020, 06:23 AM
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AMC did three deals in 2016/2017 for $3 billion, when you spend that much money on a dying business model anything that causes a disruption will mean they default on loans. Sad but they should have been better with their money.

I am not sure how they plan to recover when they will not play Universal movies. I am sure if Bezos buys AMC they will play Universal movies again and lots of Amazon movies.

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post #15 of 112 Old 05-22-2020, 12:24 PM
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I suspect they will go C11 or something like that and then someone will buy them for pennies on the dollar and can then make a business of it.

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post #16 of 112 Old 05-27-2020, 11:00 PM
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Don't forget the owners of AMC are not American..Chinese money..AMC Theatres was acquired by Wanda Group, a Chinese conglomerate headquartered in Dalian, in May 2012. Wanda Group paid $2.6 billion to acquire AMC Theatres' 5,048 screens in 347 theaters in the U.S. and Canada. The deal was finalized on September 4, 2012. The acquisition made Wanda the world's largest cinema chain.


Take most of what analysts are saying.. with a very small grain of salt...
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post #17 of 112 Old 05-29-2020, 03:43 PM
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I had a look at amc Orlando at uni studio s boardwalk and i said nope to the high prices.

They either adapt and deal with lower entry tickets prices or they cease to exist.


They had years to find less costly lease properties and years to invest in independent movie production but they instead decided to charge as much as possible and ignoring eficiency in business operation aka lets charge movie goers to the max.


I have my humble home theater and feel sorry about low level u.s. workers lost movie theater jobs.


As far as Chinese owners and investors heres how i feel


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post #18 of 112 Old 05-29-2020, 11:49 PM
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Quote:
Originally Posted by Russell Burrows View Post
I had a look at amc Orlando at uni studio s boardwalk and i said nope to the high prices.

They either adapt and deal with lower entry tickets prices or they cease to exist.


They had years to find less costly lease properties and years to invest in independent movie production but they instead decided to charge as much as possible and ignoring eficiency in business operation aka lets charge movie goers to the max.


I have my humble home theater and feel sorry about low level u.s. workers lost movie theater jobs.


As far as Chinese owners and investors heres how i feel


Byebitch.gif

It's like going to AMC at Universal Studios in Hollywood, CA. Nobody goes there (tourists mainly)..it's cheaper to go to Burbank and Burbank AMC has better facilities. Beware also industries are interconnected..AKA Your job is not safe...
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post #19 of 112 Old 06-01-2020, 10:25 PM
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Oh gosh, you mean no more over-priced ****ty popcorn that takes 30 minutes in line to get so I can be annoyed at some little **** checking their Snapchat? I hope I can sleep tonight.
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post #20 of 112 Old 06-03-2020, 07:20 AM
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It only got worse today...

"AMC Theatres Expresses “Substantial Doubt” About Reopening"

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post #21 of 112 Old 06-03-2020, 07:29 AM
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It'll be interesting to see where things go from here. There is definitely demand enough for theaters to continue to exist (or there will be once the coronavirus fears fade), but really the ones holding all the strings here are the studios. If they decide that streaming is a better business model than sending the films initially to theaters, then theaters are pretty much over. I'm reluctant to accept that that is the future of the movie industry but it is possible, I suppose.

Edit: after giving it some more thought. I actually find it highly unlikely that studios would stick to streaming. The theater plus disc/streaming option is essentially a way for the movie studios to double dip from the consumers. You pay to watch it in theaters and then you pay to buy/rent it on disc/streaming. Streaming may be a good alternative for the disc renting/buying phase, but they're still missing out on a ton of revenue from the theater phase.

Another thing to keep in mind here is that theaters are pretty significant infrastructure investments. The buildings and equipment aren't likely to go anywhere else. Even if one theater company goes out of business, another will pick it up later.

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post #22 of 112 Old 06-03-2020, 07:56 AM
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It'll be interesting to see where things go from here. There is definitely demand enough for theaters to continue to exist (or there will be once the coronavirus fears fade), but really the ones holding all the strings here are the studios. If they decide that streaming is a better business model than sending the films initially to theaters, then theaters are pretty much over. I'm reluctant to accept that that is the future of the movie industry but it is possible, I suppose.

Edit: after giving it some more thought. I actually find it highly unlikely that studios would stick to streaming. The theater plus disc/streaming option is essentially a way for the movie studios to double dip from the consumers. You pay to watch it in theaters and then you pay to buy/rent it on disc/streaming. Streaming may be a good alternative for the disc renting/buying phase, but they're still missing out on a ton of revenue from the theater phase.

Another thing to keep in mind here is that theaters are pretty significant infrastructure investments. The buildings and equipment aren't likely to go anywhere else. Even if one theater company goes out of business, another will pick it up later.
It could all just be an academic issue of how a bankruptcy is structured.

Agreed the specialized spaces and equipment to make movie theater is essentially useless for any other purpose. Maybe Regal buys up the prime locations, if it survives and AMC does not...

I guess the one thing to keep in mind is all the old movie palaces that fell into ruin, with the lucky ones being saved and repurposed as performing arts centers. That was caused by TV. So it is in fact possible, By virtue of historical precedent, for these structures to just suddenly be obsolete.

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post #23 of 112 Old 06-03-2020, 08:03 AM
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Rumor is Amazon is on the table to consider buying AMC, thoughts on that? maybe and I would be totally down for this, they roll AMC A-List into the prime membership.

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post #24 of 112 Old 06-03-2020, 08:28 AM
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Rumor is Amazon is on the table to consider buying AMC, thoughts on that? maybe and I would be totally down for this, they roll AMC A-List into the prime membership.
As far as rumors go, I like it a lot because it provides food for thought.

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post #25 of 112 Old 06-03-2020, 08:50 AM
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It seems inevitable that there will be a significant culling of existing movie theaters across the board. Direct-release VOD will own the majority of opening night/weekend business until the movie going public begins to feel safe in public groups. When people DO start going out again it will also probably be in even smaller numbers than have been seen in recent years. Kids on weekends and holidays plus teens and young adults on date night won't be a big enough market to keep all the existing theaters afloat going forward.

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Currently Im' working from home but my office is a few blocks away from AMC 25 in Times Square. Its my favorite Dolby Cinema and I think one of the first!
I hope they can survive this storm.
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post #27 of 112 Old 06-03-2020, 09:19 AM
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Currently Im' working from home but my office is a few blocks away from AMC 25 in Times Square. Its my favorite Dolby Cinema and I think one of the first!
I hope they can survive this storm.
Great theater, I saw Deadpool premiere night there, one of the last times I went to a theater. I Remember thinking "if only all theaters were like us" but still, they need to do something about those exit signs casting light on the screen.
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post #28 of 112 Old 06-03-2020, 09:31 AM
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I don't have anything wise to add, but since so many posts are of the "I prefer watching movies in my home theatre anyway" variety I wanted to cast a vote in the opposite direction. I was an A-List subscriber, and there's never been a better time to be a frequent, avid filmgoer. Dolby Cinema, IMAX and AMC Prime are all stellar ways to experience a movie, and although I love a good home theatre as much as everyone else at AVSForum there really is no comparison to a properly calibrated, well-designed movie theatre.

I watch plenty of streaming content as well as physical media (Netflix discs-by-mail FTW!), but will always stan for the cinema experience. Here's hoping that AMC makes it, or, at the least, some enterprise emerges out of the bankruptcy that can operate their better locations.
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post #29 of 112 Old 06-03-2020, 09:31 AM
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I completely agree, as for me, theaters need a major technological breakthrough: years ago we went to the cinema for the sake of a beautiful picture and high-quality sound, then for the sake of 3D and better quality. But now I can watch movies and TV shows in 3D with high-quality sound in the company of friends in my basement! So why should I pay the theater too?..
Those of us on AVS Forum are the minority of the total movie going population, though. While I have a decent setup at home, I do not have a dedicated home theater. Most people do not even have what I have. While I prefer watching many movies at home, I do still enjoy going to see certain movies "on the big screen" for the experience. (Good example, watching A Quiet Place in a full theater was an experience I could not have replicated at home.) Even with people who like to stream content, most people doing that at home are likely using a flat screen TV and maybe a soundbar. Losing the option of movie theaters will be a big loss to people who do not have dedicated home theaters with great projection and equipment.
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post #30 of 112 Old 06-03-2020, 09:34 AM
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Great theater, I saw Deadpool premiere night there, one of the last times I went to a theater. I Remember thinking "if only all theaters were like us" but still, they need to do something about those exit signs casting light on the screen.
The Martian was my first film I watched there. I was in awe of Dolby Atmos in that theater, what an experience.

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