Today’s big news is AMC spending USD $600 million on upgrading its cinemas, primarily introducing bigger and more comfortable seats. The strategy has been flagged before but now everyone is following. It is effectively an admission of defeat in terms of ever hoping that attendance figures will improve. Now it is about extracting as much revenue from the few people that still go to the cinemas (NB: though attendance is up in the renovated screens, but unlikely to boost overall national figures). WSJ has a good analysis:
The nation’s second-largest movie theater chain is spending hundreds of millions of dollars outfitting a number of theaters with La-Z-Boy-type seats that fully recline—a conversion that removes up to two-thirds of a given auditorium’s seating capacity. It’s a less-is-more approach to a business that has long thought bigger was better.
But AMC’s counterintuitive success with the program has converted skeptical competitors and become integral to the company’s pitch to new investors.
The conversions are AMC’s highest-profile campaign since it was purchased for $2.6 billion by China-based Dalian Wanda Group Corp. in 2012 and went public last December. The company plans to spend about $600 million over the next five years to “reseat” 1,800 of its nearly 5,000 screens. The renovations typically cost $350,000 to $500,000 per auditorium, with landlords often shouldering some of the cost. LINK
The WSJ blog also has a good point that you wio’t be finding this in the biggest cities (NYC and LA) as rent is too high already.
The conversions highlight a liability facing the country’s biggest film exhibitors: a supply of outdated theaters that rarely sell out, yet would be costly to tear down and rebuild.
Attendance in renovated AMC auditoriums has leapt 80%, on average, despite the drastic reduction in capacity to sometimes fewer than 70 seats. The company declined to say what the average before-and-after attendance numbers were, though Mr. Lopez acknowledged that the biggest attendance boosts would come in theaters that were weak performers, some of which were losing money. LINK
Argentina: As the World Cup approaches its conclusion, one country is going all out to show the key game on the big screen. No, not the UK, but rather its old foe Argentina in their game against Germany tonight.
Over 100,000 people across Argentina have watched their national team compete in the 2014 World Cup at movie halls, which broadcast the games.
The National Cinema and Visual Arts Institute (INCAA) said in a statement that it has made 38 movie halls available for screenings of national team matches, featuring star footballer Lionel Messi, Xinhua reported.
Argentina Saturday defeated Belgium 1-0 to advance to the semifinals against the Netherlands in Sao Paulo Wednesday. The two nations haven’t disputed a World Cup semifinal since the 1990 edition in Italy. LINK.