AMC Announces Plans to Increase Pre-Movie Advertising
AMC Theatres, the largest movie theater chain in the United States, has announced plans to increase pre-movie advertising in its theaters. The decision comes as the company looks for new ways to boost revenue in the wake of the COVID-19 pandemic, which has significantly impacted the movie theater industry.
The move by AMC brings it in line with its biggest competitors, Regal and Cinemark, both of which have been increasing pre-movie advertising since 2019. The decision to ramp up advertising in theaters is seen as a way for the company to capitalize on the captive audience that attends its theaters, as well as to offset the losses incurred during the pandemic.
According to a report by Variety, AMC plans to increase the amount of pre-movie advertising shown in its theaters by 20% starting in the fall. This means that moviegoers can expect to see more commercials and trailers before the feature presentation begins. The decision has already sparked backlash from some loyal customers, who have expressed frustration over the increasing amount of advertising in theaters.
In a statement, AMC CEO Adam Aron defended the decision, stating that the increased advertising is necessary for the company to remain competitive in the changing landscape of the movie theater industry. “We understand that some of our customers may be unhappy with this decision, but we believe that it is necessary for the long-term success of our business,” Aron said.
Some industry experts have also weighed in on the decision, with some expressing concern that the increased advertising could drive customers away from theaters. “Moviegoers already pay a premium to see movies in theaters, and adding more advertising could be seen as a cash grab by the company,” said one industry analyst.
Despite the backlash, AMC’s decision to increase pre-movie advertising is not entirely surprising given the challenges facing the movie theater industry. With streaming services like Netflix and Disney+ becoming increasingly popular, movie theaters have been struggling to attract customers back to the big screen. The COVID-19 pandemic only exacerbated these challenges, with many theaters forced to close their doors for months at a time.
In response, theater chains like AMC have been looking for new ways to generate revenue and stay afloat. In addition to increasing pre-movie advertising, AMC has also introduced new subscription services and premium offerings to entice customers back to its theaters.
As the movie theater industry continues to navigate the challenges posed by the pandemic, it remains to be seen how customers will react to AMC’s decision to increase pre-movie advertising. Will moviegoers be willing to tolerate more commercials and trailers in exchange for the experience of seeing a movie on the big screen? Only time will tell.
In the meantime, AMC’s decision serves as a reminder of the delicate balance that theater chains must strike between generating revenue and keeping customers happy. As the industry continues to evolve, it will be interesting to see how companies like AMC adapt to the changing landscape of moviegoing. Will increased advertising be the answer, or will it drive customers away? The future of the movie theater industry hangs in the balance.