How Movie Theaters Nearly Ruined Themselves (But There's Still Hope)
Where there’s opportunity for survival, there’s opportunity for change.
AMC stock has dipped significantly since its position in the wild WallStreetBets saga. Maybe it will rise up to Gamestop numbers in 2021, maybe it won’t (no thanks to the apps that have suddenly rebelled against their own customers). But what Reddit and the internet did indeed accomplish was essentially give the movie theater company a lifeline, a chance to survive another year (whether it deserve it or not) as it battles a pandemic, battles Disney+, battles Netflix, and fights a Hollywood whose input in the past decade has significantly decreased in favor of more major tentpole films or shipping them directly to streaming services.
Personally, I don’t see the gloom and doom other people and analysts see about the future of movie theaters. I think it’s like baseball, a relic of the past but too delightful an experience to ever truly fall apart and disappear from the culture. However, if AMC (among the other movie theater chains) wants to thrive in the post-pandemic world and the Online Streaming world, it needs to evolve into a better version of itself. Movie theaters can argue all they want the impact of Netflix and Hulu, but truthfully the movie theater companies have shot themselves in the foot a variety of times for a multitude of bad decisions and a silly amount of stubbornness. I’m here to present ideas that could help revive movie theaters at the very least, and could help them maintain its existence alongside the rise in streaming services.
First off, we have to discuss prices. Movie theater tickets have risen (prices are set by the theaters, by the way) above what inflation dictates, and this is without the upgrades of 3-D, IMAX, dine-in cinema, larger seating arrangements, etc. A family of four could not afford a monthly trip to the movies alongside all the rising costs of other elements of life including cable, internet, food, and whatnot. There has to be a better balance of pricing within each theater: food, alcohol, snacks, candies, and the drinks. It should never cost me personally close to $20 just for a soda and popcorn, that’s wildly unacceptable. Now, prior to the pandemic AMC was heading in the right direction on one aspect, they just need to take it a little further, and other movie theater chains need to follow suit.
AMC Stubs A-List is a great idea that needs to be taken a bit further and needs to be adopted by all theater companies. Netflix thrives because their pricing is justified by the sheer amount of content and options within the app. AMC needs to expand the amount of advantages of having the monthly service in order to ring in more moviegoers and families to upgrade from a few visits a year to a few visits a month. We’re talking longer movie theater hours for Stubs members, we’re talking special sneak viewings of upcoming films, discounts of everything within the theaters nationwide, and having a couple screens reserved only for Stubs members. Give Stubs members exclusive marathons, exclusive menu items, exclusive screenings of classic films.
A Stubs member is basically dedicating a portion of their life to theaters, so they should be rewarded extensively for it with ongoing new content outside of the usual options that exist. Take it a slight step further, perhaps even offer your own streaming service for Stubs members, to really emphasize the value of the monthly service. Maybe use some of your budget to also pick up short films and independent films and display them exclusively through your theaters. The rise of technology hasn’t just improved the amount of ways to observe content, but the amount of ways to create it. Unlike the gaming industry, the world of movies still hasn’t quite fully embraced independent filmmaking as much as they should.
Next question, do movie theaters only have to show modern-day feature length films? Why not expand the horizons and offer other kinds of viewings? Why not build deals to give more varied content like short films, older films, television show marathons, cartoon shorts past and present, older film series marathons, championship sporting events, award shows, live video game tournaments, and even concerts? There have been instances of theaters in Central Florida (especially in Tourist Country) dipping their toes in displaying concerts, television show premieres, and even operas. My point is, the movie theater doesn’t have to reduce themselves to rely strictly on movies, and new ones at that. Netflix doesn’t just have movies and shows---they have a stranglehold on the stand-up comedy market as well as incredible documentaries.
Variety is the main key of survival, but so is understanding your competition.
One of the most controversial decisions made in recent years was AMC (among others) flat-out refusing to show any Netflix films in their otherwise-enjoyable Best Picture Nominee marathons held every February right before the Academy Awards. In order for AMC, Cinemark, Alamo, and whoever else to not get left behind, they have to be willing to work with streaming services, they are a major player in the movie industry whether they like it or not. There are spectacular movies coming out of streaming services, whether movie theaters like it or not, and they do deserve to be displayed alongside the other nominees. I personally would have loved to see The Irishman in theaters, despite its unforgivable running time it was a beautifully shot and well-produced piece of filmmaking.
Cut deals with Netflix, Disney+, HBO Max to be able to also show certain shows and movies at smaller windows of time to pick up those crowds that want to see said upcoming material in larger crowds with friends and fans as opposed to home. The viewing experience is at its best when shared in hyped groups, there’s a less-than-zero chance Avengers: Endgame would have had the same impact if released on Disney+ exclusively. At the same time, imagine the impact if movie theaters had cut a special deal to be allowed to display the wildly incredible second season finale of The Mandalorian for large crowds of Star Wars fans to see together (in this scenario, the pandemic never happened). In that situation, AMC wins by earning some hype money, and Disney+ wins by still keeping their subscribers while cashing a little extra on the side.
At the end of the day, Hollywood needs theaters, zero chance blockbusters can maximize its impact merely being available at home. Movie theaters in its format and structure will always have that special advantage, similar to physically going to a sporting event as opposed to just catching it at home. At this point it’s a matter of seeing this and not trying to see Netflix as this deadly threat. Netflix and AMC can exist together, but AMC cannot continue its pettiness of avoiding showing certain films altogether just because they didn’t spend much time in theaters. Take what you can, offer as much as possible to your customers, loyal and casual.
Movie theaters in a post-pandemic world have a great opportunity to revisit what it is and evolve into what it could become as streaming services continue growing in popularity and the number of films has decreased in a Hollywood with far fewer players than a decade ago. I personally believe that with the right adjustments in price, variety, and relationships with the concept of streaming services, companies like AMC can continue to make money and remain among the top options for outings nationwide, especially in more deserted parts of the country and even the world. But the first major step is embracing the future, and not remain stuck in the past.
Embrace change, embrace Netflix, and the world of entertainment will embrace you back.
As famously said in Moneyball, “Adapt or die.”