AMC Announces Launch Of New Streaming Service
In an effort to address decreasing numbers of moviegoers, AMC will launch an on-demand movie streaming service.
AMC is the largest movie theatre chain in the world. The company has been facing financial troubles as less and less people are going to movie theatres. During the first half of 2019, attendance at AMC locations across the U.S. decreased by 3.6 percent to nearly 127 million people. This has left investors anxious with share prices dropping to $8.95. It was $20 one year ago.
AMC’s on demand streaming service will have close to 2,000 films available for rent or streaming after their theatrical runs. This new service is meant to compete with other streaming services, such as Netflix. New releases will be available 90 days after their theatrical run. AMC has established streaming partnerships with Disney, Warner Bros., Universal, Sony and Paramount.
“Our theater business is mature. There is a high-growth opportunity in this digital expansion,” Adam Aron, AMC’s president and chief executive said.
Aron has tried numerous times to increase movie theatre attendance rates. A number of AMC locations have had their menu expanded to include alcoholic beverages. Additionally, AMC locations have been outfitted with wider screens and more comfortable chairs.