AMC Theaters, America’s largest theater chain, had already let go or furloughed 26,000 of it … [+]
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Topline: As movie theaters around the country have been forced to close in order to follow proper social distancing guidelines and stop the spread of the coronavirus, AMC Theaters, America’s largest theater chain, furloughed its entire 600-person corporate staff, including its CEO Adam Aron.
- Last week, the chain announced that it would close more than 1,000 theaters worldwide in order to slow the spread of the coronavirus.
- The chain had already let go or furloughed 26,000 of it employees who work at theaters, from concession sellers to ticket collectors.
- With few open theaters, U.S. box office revenue is nearing zero, with last weekend’s domestic box office total at only $3,920. By the end of the crisis, domestic box office losses could total $4 billion.
- In a statement, AMC said the furlough is “absolutely necessary to preserve cash and reopen our doors.”
- Under the furlough plan, some employees will continue to work, just with reduced hours and pay, while others will stop working and collect no pay.
- AMC is not the only theater chain struggling; last week, the National Association of Theater Owners requested a bailout from the government.
Big number: 42%. That’s how much AMC’s stock has fallen in the past month. The number will likely increase the longer that theaters are forced to remain closed.
Tangent: While, theoretically, movie theaters should start to see revenue revert back to normal levels after the pandemic is over, it’s possible that the behavioral changes caused by COVID-19 will have long-lasting effects. In order to achieve some sort of revenue flow, studios are choosing to forego theatrical windows and release films on streaming and pay-per-view services. As more film releases are pushed back, studios are more likely to release films directly to consumers, changing audiences’ preferences and expectations.