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6d ago

AMC Begins Extended Preshow Ads, Adds 25–30-Minute Start Warning

The theater chain has struck a deal for extra commercial slots to boost ad revenue alongside shoring up its finances with fresh creditor funding.

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AMC's latest move just doesn't make sense.
People watch movies in a newly reopened AMC River East theater on Aug, 20, 2020, in Chicago. (E. Jason Wambsgans/Chicago Tribune/Tribune News Service via Getty Images)
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Overview

  • On July 1, AMC rolled out expanded preshow advertising nationwide under its new National CineMedia partnership, including a premium ‘Platinum Spot’ and up to five minutes of post-start commercials.
  • AMC’s website now features a disclaimer alerting patrons that films will begin 25–30 minutes after scheduled showtimes to reflect the longer ad and trailer lineup.
  • Facing the weakest non-pandemic earnings since 1996, AMC secured $223 million in new creditor financing with options to equitize up to $337 million of existing debt.
  • The move reverses AMC’s 2019 rejection of in-theater ads and aligns it with Cinemark and Regal, which have offered similar preshow commercial packages since late 2019.
  • Industry observers warn that expanded ad loads risk undercutting the unique theatrical experience even as ticket sales show signs of summer recovery.