Disney buying AMC?

[jade1]

Mandolorian on the XDX/Disney+ screen please.

 

[YesterDark]

If my kids were older or I was younger without responsibilities, I'd pay money to binge a whole season on the big screen.

 

[jade1]

If my kids were older or I was younger without responsibilities, I'd pay money to binge a whole season on the big screen.

Yep. Or a premier Disney+ gets you a seat if available. Maybe even just Friday or release days. But yea after the season they could run the whole season for a fee or specific members.

 

[Naomeri]

I think they should. We'll be going back to the movies at some point in our lives in the next 12-18 months. Disney owning all that realestate will just help build their brand AND increase the revenue share of their $1-2 billion movies.

Plus, if the model is profitable, you can basically open up a Disney Store in every location and sell merch. You though they were good at selling merch when you came off a ride? Imagine the sales if Disney could sell them merch coming out of seeing the latest Princess movie for the first time. Current theatres really only make money off of concessions. Disney could add merch sales to those numbers.

Hell, you can add a second tier Disney+ subscription that gives you access to X movies per year. Tie both of those properties together.

Just say'in. Could be a money maker for them.

Do you know how fast I’d jump on D+/theatre release subscription? I love seeing movies in theatres, and the COVID postponements are killing me. I disagree with everyone that says movie theatres should die out just because we can watch movies at home. Some movies need the BIG screen experience, and the experience of watching with a crowd.

As far as selling merch, some theatres have already been doing that on a small scale, I’d been seeing Funko Pops and such on the candy shelves at my local AMCs for a year or so before everything stopped.

 

[DL1WDW2]

I enjoy the big screen experience.
I wish Disney would keep the AMC at Disney Springs but they did not keep the AMC open in Downtown Disney, did they?

 

[AvidDisReader]

Look at the ideas that just came up in this short time this thread opened, can you imagine what the Disney execs could come up with once a deal was done. The possibilities are large and potential immense. As long as Disney steers clear of any monoply issues.

 

[firefly_ris]

As an AMC stock holder I'd be cool with that at this point, ha.

 

[nonnydd]

I think they should. We'll be going back to the movies at some point in our lives in the next 12-18 months. Disney owning all that realestate will just help build their brand AND increase the revenue share of their $1-2 billion movies.

Plus, if the model is profitable, you can basically open up a Disney Store in every location and sell merch. ........

Just say'in. Could be a money maker for them.

Don't forget kiddie birthday parties, or Star Wars release parties. AMC would give them a venue for these in towns across the country. Just add a party room and make pizza.

 

[YesterDark]

Don't forget kiddie birthday parties, or Star Wars release parties. AMC would give them a venue for these in towns across the country. Just add a party room and make pizza.

Only problem with that may require additional overhead that they don't need. But some theatres do that already, or used to.

 

[Mit88]

Disney would have to “change the game” of the movie theater industry in order to make a profit from a venture like buying a movie theater chain. The AMCs and Regals got by with very thin margins. The A-List type programs were what could have finally started had them turning the corner, and it was, until covid hit. I seriously doubt a movie studio will get into the theater business as they know first hand how little these theaters make. If I were to guess, it’ll be a company like Amazon that buys out one of the theater chains

 

[YesterDark]

I don't think they would have to change the game much for all the reasons above. Making 100% of ticket sales in some markets would be nice.

 

[Mit88]

I don't think they would have to change the game much for all the reasons above. Making 100% of ticket sales in some markets would be nice.

Yes, 100% of ticket sales on their own releases. If they were able to get distribution rights to other studios’ movies, then it’s well under 100%. While they’d make a lot of money during their tent pole releases, it wouldn’t be enough to run a bunch of theaters year round. It’s not impossible, just unlikely

not to mention they just spent a ton on the Fox acquisition, they’re in a lot of financial trouble due to covid, a lot of their resources are going towards their streaming service, and even they don’t know what will happen in terms of people returning to theaters. While I would personally love to see studios buy up these theater chains and keep them running, I just have a hard time believing any of them would, especially given most of them have their own streaming platforms now.

 

[YesterDark]

Yes, 100% of ticket sales on their own releases. If they were able to get distribution rights to other studios’ movies, then it’s well under 100%. While they’d make a lot of money during their tent pole releases, it wouldn’t be enough to run a bunch of theaters year round. It’s not impossible, just unlikely

not to mention they just spent a ton on the Fox acquisition, they’re in a lot of financial trouble due to covid, a lot of their resources are going towards their streaming service, and even they don’t know what will happen in terms of people returning to theaters. While I would personally love to see studios buy up these theater chains and keep them running, I just have a hard time believing any of them would, especially given most of them have their own streaming platforms now.

Not sure you really need other studio movies outside very major releases. You can bolster them by limited release movies from all the movies they already own. Disney+ tie-ins and merch sales.

It all depends on whether or not they can get AMC on the cheap and not at a heightened price like they did with Fox.

 

[tjkraz]

In 2019, Disney made over $13 billion in theaters. Disney+ is a growth market, but it's a long way from replacing that $13B. If owning theaters and running them at break-even or a modest loss is the best option for keeping that revenue stream alive, Disney would be foolish to not consider it.

 

[YesterDark]

I'd use a 5 year average on theater numbers which is probably half that. I think 2019 was a unicorn year for them. I don't you can project that going forward, even if COVID never existed.

 

[Mit88]

Not sure you really need other studio movies outside very major releases. You can bolster them by limited release movies from all the movies they already own. Disney+ tie-ins and merch sales.

It all depends on whether or not they can get AMC on the cheap and not at a heightened price like they did with Fox.

Seeing Catalog movies in theaters is great in theory, but in the grand scheme of things, people just don’t go out and see them, not enough to make money between the time new releases are out. In 2019 Disney itself released 8 films in theaters while fox released 12. If you’re only releasing ~20 new movies into your theater a year, even at 100% of the ticket sales, it’s still a tight rope, and that’s assuming people return to the movie theaters in 2019 numbers. AMC is nearing bankruptcy a year after their biggest fiscal year ever (5.5B), and thats with playing movies from every studio

I can’t imagine AMC costing anywhere near what Fox did, especially in how bad of shape AMC is in, but it’s still an investment, time and money wise.

I do however like the idea of Disney+ Episodes/movies having maybe a premiere night where you can see the new Mandalorian episode on the big screen the night before it comes on the streaming platform.

As someone that believes the theater experience is irreplaceable no matter what kind of home theater setup you have, I just don’t think Disney will go out and buy a theater chain.

 

[skeeter31]

Seeing Catalog movies in theaters is great in theory, but in the grand scheme of things, people just don’t go out and see them, not enough to make money between the time new releases are out. In 2019 Disney itself released 8 films in theaters while fox released 12. If you’re only releasing ~20 new movies into your theater a year, even at 100% of the ticket sales, it’s still a tight rope, and that’s assuming people return to the movie theaters in 2019 numbers. AMC is nearing bankruptcy a year after their biggest fiscal year ever (5.5B), and thats with playing movies from every studio

I can’t imagine AMC costing anywhere near what Fox did, especially in how bad of shape AMC is in, but it’s still an investment, time and money wise.

I do however like the idea of Disney+ Episodes/movies having maybe a premiere night where you can see the new Mandalorian episode on the big screen the night before it comes on the streaming platform.

As someone that believes the theater experience is irreplaceable no matter what kind of home theater setup you have, I just don’t think Disney will go out and buy a theater chain.

Agree, without a nice deal worked out between multiple studios, it just wouldn’t make fiscal sense for one studio to buy an entire chain. Now will Disney look to purchase the AMC at DS and will Universal look to purchase the theater at City Walk? That I could see and turn them into studio specific theaters. But to buy a whole chain, have to staff it, maintain it, etc for only ~20 movies a year just doesn’t make sense.

And I agree that back catalogue releases just wouldn’t have the same draw as new movies.

 

[maverik85]

Agree, without a nice deal worked out between multiple studios, it just wouldn’t make fiscal sense for one studio to buy an entire chain. Now will Disney look to purchase the AMC at DS and will Universal look to purchase the theater at City Walk? That I could see and turn them into studio specific theaters. But to buy a whole chain, have to staff it, maintain it, etc for only ~20 movies a year just doesn’t make sense.

And I agree that back catalogue releases just wouldn’t have the same draw as new movies.

I agree as well. It's already a tight industry financially that I don't see them buying the whole chain. However, purchasing the theatres at Disney Springs and Downtown Disney I could see. It's only a couple spots that they could use to kind of test the waters of a Disney run theatre. Plus while back catalogue movies as a whole wouldn't be a big draw, I could see it being an ok turnout for people on site of Disney properties. The ones going to Disney World/Disneyland are going to be the bigger fans and more apt to pay to see an older movie, plus it could potentially be one of the cheaper experiences for a family evening at the resort compared to other options. And many parents might enjoy taking their kids to see a movie they saw in theatres as a kid and recreate that experience with them.

 

[andyman8]

While the likelihood of Disney purchasing a movie theater chain right now is mostly nonexistent, it's worth noting there is precedent for a media company owning a movie theater chain (or at least being owned by the same parent company). ViacomCBS is owned by National Amusements, which also owns Showcase Cinemas and several other movie theater brands in the U.S. and abroad.

 

[PortMickey]

I'm sure Disney REALLY wants the theater industry to continue. Theatrical releases are very profitable for Disney and probable required to keep tentpole production budgets anywhere close to where they are. You can't spend $300 million for a streaming Avengers movie. You get both now (theaters and streaming), hard to just give one revenue stream up. If the theater chains go bankrupt, someone is going to pick up the most profitable locations on the cheap. Many theaters may never open again making the remaining ones even more profitable. For the right price, Disney could gain more profit and control. Or be compelled defensively stop a competitor from doing it.