AMC - Not Again! Please, Stop the Agony

 American Multi-Cinemas (AMC) is the largest cinema chain in North America (over 7,700 screens) and over 2,800 screens in Europe. But with all of those screens comes management issues and the biggest one for AMC is debt and generating revenue to pay it off.

Steering this large ship is Adam Aron and things aren't so rosy for Adam these days (although over the years Adam has become very wealthy at the expense of AMC shareholders and debtors - but that's another story).

Currently AMC stock is trading at $4.40/share indicating a market value of $4.1billion. It is projecting a loss of over $900 million this year. Company debt stood at $11.8 billion at year end 2022, indicating that its debt is over twice the value of the company.

Getting Back to the Point

In February, in what AMC management thought was a stroke of genius in generating more revenue, implemented a new admission pricing policy, termed 'Sightline'.

Under this policy, tickets are priced upon where a patron sat in the auditorium. Center seats cost more than 'off' center ones. Middle and back seats more than a front row seat, etc. 

Upon getting wind of this ridiculous policy Cinema Mucho Gusto published a post decrying this move as a failure from the get-go. And, sure enough, AMC pulled out of the 'Sightline' program this week. 

Citing that their pivot away from the program was "necessary to ensure its ticket pricing stays competitive", it now plans on up charging for "better, more comfortable recliner seats." Obviously, they haven't learned their lesson, and CMG predicts this new policy will also fail.

AMC 'Sightline' seating screen. Yellow are best seats and cost more.

Ever since movie theaters opened seating was on a first-come, first-served basis with all ticket sold at equal price. Over the years this policy was adopted to give 'special' pricing for matinees, seniors, children, etc. Now, many moviegoers purchase their tickets online before going to the cinema, and in most cases, they can choose which seats they want upon purchase - again first-come, first-served.

By instituting rules and up-charges for seating makes it more difficult for the moviegoer and stimies their attendance. Too complicated and costly forces many to wait until the film is streamed and forgo the cinema altogether.

Bad move AMC!

By: Jim Lavorato, Publisher, Cinema Mucho Gusto - a service of               Entertainment Equipment Corporation