This has been a difficult seasonal moment in your local multiplex. Film studios make the most of Thanksgiving weekend, anchored in a large circle of family gatherings full of leftovers but eager for entertainment. Hollywood offers possible blockbusters, courting viewers in giant groups.
Naturally, it will take place from year to year. Studios and consumers are moving away from film in the new normal. Science-friendly families have their Christmas meetings, if not virtual. Have you noticed Black Friday’s offerings on gigantic movie theater prices to expand your home theater?
It is general that the only historical film to be released this festive weekend is Comcast (NASDAQ: CMCSA) The Croods: A New Age, an animated feature film about a prehistoric circle of relatives who roam a closed paradise that has evolved to the point of peaking at their fundamental needs. We are the Croods in a new era. We are now comfortably eating entertainment at home, and AMC Entertainment Holdings (NYSE: AMC) will not take us out of this enclosed paradise that now comfortably meets the maximum of our fundamental needs.
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AMC Entertainment knows how this movie ends. The country’s largest multiplexer operator is doing everything in its power to keep its projectors running, remaining open even after the closure of its biggest rival Regal, selling personal projections at competitive costs and increasing the budget every time its inventory increases. it won’t be enough.
I’ve been in the videos three times since the exhibitors started reopening this summer, and all three times it was in an AMC. Consumers aren’t with me yet. My wife and I were alone in one of those projections. I need AMC to stay open and throw a coin in the popcorn stained collection tray to help the cause. I’m just not comfortable enough to check my luck as a shareholder because I’m no more willing to take risks with my fitness than with my financial form.
The theater industry has dramatically replaced this year, not for the eldest if you’re one of the last exhibitors in the country. In April, AMC threatened to block studio screenings because it opted for premium virtual delivery instead of waiting for a theater premiere. Don’t you forget? The studio was Comcast’s Universal, which turns out to be the only film mogul to help the industry this holiday weekend with a new version.
Just seven months ago, AMC had the kind of bargaining force to place such an order in Hollywood and be taken seriously, now it’s Hollywood that makes the decisions, dictating the exit windows with an inclination to control its own destiny. Mix of premium streaming versions along with theatrical shoots when economically advantageous. The public also appreciates the new selections. Your angle multiplexer has no selection and hurts.
AMC investors don’t have to worry about the new normal, it’s temporary. They’ll have to be afraid of the next normalcy. When AMC’s revenue fell by 99% in the quarter of this time and 91% in the third quarter, no one cared. He was smart if analysts expected higher performance. This is an era of transition, and Wall Street professionals have been slow to replace their estimates to reflect the terrible operational climate.
AMC has recorded much higher-than-expected losses in each of the last four quarters, before the COVID-19 crisis, and this is also not a decisive thing. Anyone who buys from AMC now buys the dream that movie screenings will be full. in a year. They’re in the Hollywood finale, not the Hollywood finale. (Spoiler alert: Hollywood ends up as multiplexer operators know. Media movements that control film production are changing, affecting consumers that were before COVID-19 was one thing).
Let’s put aside the fact that top speculators with low-digit stocks do not recognize that AMC had to increase its number of notable shares by more than 50% just to drive a bankruptcy filing in 2021. The real challenge here is that cinema is an obstacle that is depreciating.
AMC will do everything in its power to survive and, if it survives, it will be a smarter company. He took credit for the 2020 break to expand cell phone orders and seat reservations.
The challenge persists – and his tombstone will reveal it – that he wants film studios and audiences to return and, for the time being, it turns out that no one has an interest in going back in time. it’s a new era.
Rick Munarriz doesn’t have any of the titles mentioned. Motley Fool recommends Comcast. Motley Fool has an outreach policy.
The Motley Fool is a content spouse from USA TODAY that provides monetary news, analysis, and observation designed to help others take control of their monetary lives. Its content is produced independently of USA TODAY.
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