The BIG Get BIGGER

AMC offers reclining seats in all auditoriums

AMC Entertainment, a subsidiary of China's Dalian Wanda Group, agreed to purchase the Carmike Cinemas theater circuit for $1.1 billion.  The addition of Carmike, the fourth largest theater circuit in the U.S. with 2,954 screens, will make AMC the largest cinema chain in the world with a combined screen count of 8.380 in over 600 locations. Regal Cinemas with 7,361 screens will move from 1st to 2nd place.

AMC management anticipates that the joined companies will lower combined operating costs by $35 million as they take advantage of increased scale.

AMC's expanded concession menu

Since being purchased by the Wanda Group in 2012 for $2.6 billion, AMC has reconfigured their cinema operations: reducing seat count in virtually all of their auditoriums by installing fully reclining seating, by expanding the concession menu (including alcoholic beverages at some locations) and introducing self-serve concessions - it is expected that the same changes will take place at the Carmike locations.

As the largest circuit AMC management has stated that they may request the movie studios to allow them to offer movie premieres and/or special screenings before other exhibitors are allowed to screen them.

The consolidation of the movie exhibition industry continues, as the big get bigger.  The purchase price per screen for the Carmike circuit is $376,000 - a premium price.