AMC pivots... to more commercials

The pre-show just got even longer.

Nicole Kidman is putting her foot down

I feel like I understand the business side of the movies fairly well, but one thing I’ve never quite grasped is how the AMC movie theater chain stayed in business during the pandemic.

Amid the theater closures, and later a long reluctance of moviegoers to return to theaters, AMC engaged in various financial maneuvers with names like “Senior Secured Revolving Credit Facility.” Then, it became a meme stock. It all resulted in AMC avoiding bankruptcy, continuing as a going concern, and even getting people to recite the Nicole Kidman “heartbreak feels good in a place like this” monologue along with her. (Yes, I was there when this happened.)

This week, we got news that AMC has launched another effort to maximize revenue: They’re going to add more pre-roll commercials.

Per the New York Times:

Starting in July, AMC will join its major competitors in running even more commercials before movie screenings begin, in an effort to increase revenue without hiking ticket prices as the industry struggles.

The movie theater chain has struck a deal with the cinema advertising company National CineMedia to play commercials in what is known as the “platinum spot” — right before the start of a movie. It is a departure from 2019, when AMC issued a strongly worded statement rejecting the company’s proposal to place ads in that spot.

AMC, per the story, had resisted doing so previously, and is now merely moving into parity with its rivals.