Business News

AMC, Cinemark received't shut theaters even when 2020 blockbusters flee

AMC multiplex cinema.

NicolasMcComber

AMC Theaters, the largest US cinema chain, and rival Cinemark said they had no plans to close theaters even if more Hollywood blockbusters postpone their release dates until next year.

Early Tuesday, both chains announced that 80% of their locations in the United States are open to the public and will remain so despite discouraging headwinds.

AMC shares rose more than 3% on the Tuesday leading up to trading, while Cinemark shares rose nearly 3%.

The announcement comes after Cineworld announced on Monday that it would temporarily close all locations in the US and UK as box office results were disappointing and films like "Black Widow", "Wonder Woman 1984" and "No Time to Die" were moved.

With 500 fewer theaters in the US, Warner Bros. postponed a number of its big budget features including "Dune", "The Batman" and its new "Matrix" movie.

Not to mention that theater chains like AMC are still waiting for New York and California to reopen more theaters. Spikes in coronavirus cases in these states have caused lawmakers to slow reopening and severely limit visitor numbers for locations that are allowed to reopen.

"Some of our best partners like Disney with its highly anticipated 'Soul' and Universal with 'The Croods: A New Age' have new films planned for release in the next month and a half," said Adam Aron, CEO of AMC in a statement .

While Universal's sequel to "The Croods" may remain in theaters due to the studio's new video-on-demand agreement with AMC, it is very likely that Disney will be removing "Soul" from the calendar for a later theatrical release or a push to achieve its own streaming service, Disney +.

AMC also praised smaller budget films like "The War With Grandpa", "Yellow Rose", "Honest Thief" and "The Empty Man" as potential traffic drivers for its theaters.

"Cinemark's reopening plan has been designed with multiple contingent liabilities to ensure that we are able to be nimble and respond to this ever-changing environment when necessary," said a company statement.

"We will continue to open theaters when government restrictions allow and look forward to welcoming even more moviegoers to enjoy this year's latest movies, our Comeback Classics and Private Watch Parties," he continued.

Related Articles