AMC Theatres: New Plan Of Ads Before Movies Won't Detract Moviegoers

Core Insights - AMC Theatres is implementing a new business model by partnering with National CineMedia to introduce commercial ads before movies, which the company believes will not deter moviegoers from attending theaters [3][4]. - The initiative aims to generate additional revenue without relying solely on ticket price increases, as AMC has been exploring various revenue streams over the past five years [4]. - AMC reported a record-breaking Memorial Day weekend, with over 7 million attendees across its U.S. and international locations, marking the highest attendance since 2013 [6][7]. Company Strategy - AMC's partnership with National CineMedia will feature a "platinum spot" for ads before movie trailers, starting July 1 [3]. - The company has focused on enhancing the moviegoing experience through improvements such as premium large formats (PLFs), expanded food and beverage options, and collectible merchandise [4]. - AMC's strategy reflects a broader trend in the industry where competitors have successfully integrated advertising without negatively impacting attendance [3]. Industry Performance - AMC is the largest theater chain in the U.S. and Europe, operating 900 theaters with 10,000 screens globally [5]. - The recent Memorial Day weekend saw AMC achieve all-time records for admissions, food and beverage revenue, and overall revenue at its domestic locations [7]. - The period from May 22-26 was highlighted as the most attended weekend of 2025, indicating a strong recovery and interest in theatrical releases [7].