ECON What NEW barriers are there for going to a movie theatre in the future? And the trickle down effect.

S

sleepyeddie

Senior Member
We all know that there are a bunch of bad movies and that they charge to much for concessions. The new barriers of going to a movie theatre off the top of my head are 1. Economics. Massive unemployment. 2. Stigma of safety. Is that
coughing prick on his cell phone infected? 3. Spending changes. Yes I have a job and money, but I need to prepare myself for the next society shutdown or a layoff.

A trickle down effect that I see is that many if not most movie theatres will no longer be. Remember, movie theatres make most of their money off of concessions. Another trickle down effect I see is that big screen stars will make less, and or move to the small screen. And the idea of a "dinner and a movie", will further hurt the restaurant industry.
 
packyderms_wife

packyderms_wife

Neither here nor there.
One of the biggest chains said it won’t be reopening this morning, saw several articles from multiple sources throughout the day.

The reality is most people now own fairly decent home theater systems and the6 buy movies online to stream. Popcorn is cheap and easy to make, hit 5he dollar store for candy and soda pop, and boom you can watch a movie in your pjs in the comfort of your own home.
 
H

Housecarl

On TB every waking moment
The "stigma of safety" also includes the "random nut" with one means or another of mass mayhem beyond being infected. There's also the issue of "location" and property "rents" vs "native clientele".
 
H

Housecarl

On TB every waking moment
Posted for fair use.....
www.fool.com

Get Out of Movie Theater Stocks While You Still Can | The Motley Fool

You may be tempted to yell "fire sale" in a crowded collection of multiplex operators, but history isn't kind for a weak platform with weak product in a weak economy.
www.fool.com www.fool.com

Get Out of Movie Theater Stocks While You Still Can
You may be tempted to yell "fire sale" in a crowded collection of multiplex operators, but history isn't kind for a weak platform with weak product in a weak economy.

Rick Munarriz
(TMFBreakerRick)

Apr 9, 2020 at 9:00AM

Author Bio

The prognosis isn't getting any better for the movie theater industry. AMC (NYSE:AMC) -- in a letter obtained by Deadline -- wrote to its landlords late last month, explaining that it will stop paying rent this month. The sobering report finds Loop Capital analyst Alan Gould downgrading the stock to "sell" on Wednesday, concerned about the liquidity of the country's largest multiplex operator.

AMC argues that its theaters have been closed since mid-March. It has furloughed 25,000 employees, reduced salaries of its general managers, and slashed payroll at its corporate office. It can't afford to pay the lease on theaters it can't use. Gould sees bankruptcy a "distinct" possibility for AMC, and even if it can line up financing, it will be highly dilutive. He is lowering his price target on the stock from $4 to $1.

Closing credits

Loop Capital's Gould has a rosier outlook for AMC rival Cinemark (NYSE:CNK). The smaller exhibitor passed Gould's coronavirus stress test, given its lower fixed costs relative to the competition. He thinks Cinemark will be a beneficiary of the dirt-cheap acquisition opportunities that will arise in the post-COVID-19 rubble. Gould is keeping a "buy" rating on Cinemark, but he's still lowering his price target on the shares from $35 to $22.

AMC, Regal parent Cineworld (LSE:CINE) (OTC: CNWGY), Cinemark, and experience enhancer IMAX (NYSE:IMAX) are in trouble. Movie theaters across the country -- as well as most of the world -- are closed, and folks were already going out to the movies less frequently. Domestic theaters sold fewer tickets in 2019 despite a monster slate of releases that included the final entries in the original Star Wars and Avengers franchises.

In short, this year was going to be a relative letdown under optimal conditions. Now studios are pushing out upcoming releases in some cases all the way out to next year. We're not just going to bounce back from this punch to the gut the economy is taking, and that's obviously going to weigh on the budgeting decision to spring for a night at the movies when the living room is becoming perfectly acceptable to a growing number of people during the quarantines.

Wall Street seems to think we'll just go back to enjoying what will be an iffy slate of films later this year. In his bullish update on Cinemark, Gould expects no revenue for the multiplex operator's current quarter, and it's hard to argue with that. However, he sees a decline of just 33% in the third quarter, recovering to a 20% year-over-year slide in the fourth quarter. It's so tempting to bet the under on that forecast.

Will people still be going out to the movies in healthy numbers later this year? Can I eat movie theater popcorn without removing my face mask? And speaking of concessions -- the high-margin product line that makes business click for exhibitors -- even if consumers do spring for discounted matinee tickets, are they really going to splurge on tubs of sodas and heavily marked-up snacks? Are folks going to pay up for premium-priced IMAX screenings? Will studios even bother to optimize their films for those enhanced performances?

The multiplex won't die overnight. The weak operators will falter out of the new starting gate later this year. If the mighty AMC isn't paying rent, I'm not sure how smaller players including Cinemark and Cineworld's Regal will fare any better. Hollywood thinks it needs movie theaters to survive, but not if during this cruel quarantine we've discovered that digital delivery into our homes is enough. The world was already turning against the local multiplex, but the simmering disruption is turning into a microwave blast during the industry shutdown. Weak product on a weak platform in a weak economy isn't going to make a strong recovery.



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H

Housecarl

On TB every waking moment
Posted for fair use.....
www.somagnews.com

AMC Theaters, the World's Largest Movie Theater Chain, Was on the Verge of Bankruptcy for the Outbreak

AMC Theaters, the world's largest movie theater chain, is on the verge of bankruptcy due to the coronavirus outbreak. According to Wall Street analyst
www.somagnews.com www.somagnews.com

AMC Theaters, the World’s Largest Movie Theater Chain, Was on the Verge of Bankruptcy for the Outbreak


By
Leonard Manson
-
April 10, 2020

AMC Theaters, the world’s largest movie theater chain, is on the verge of bankruptcy due to the coronavirus outbreak. According to Wall Street analyst Eric Handler, the company will have to disclose its bankruptcy by July at the latest.


Since social isolation is of great importance in controlling the coronavirus epidemic that causes fear all over the world, one of the first measures taken was to close the movie theaters. Movie theaters were closed all over the world due to the epidemic. Moreover, since the outbreak has not been brought under control yet, it remains unclear when they will open.

It was already known that this would put independent movie theaters in a difficult process all over the world, and perhaps many would have had to close their doors by not going through this process. However, the latest information revealed that some of the big movie theater chains may not be able to overcome this crisis. According to a recent report by Wall Street analyst Eric Handler, AMC Theaters, the world’s largest movie theater chains, are on the verge of bankruptcy due to the coronavirus outbreak.

Founded in 1920, AMC Theaters has 8200 halls in 661 locations in the United States and 2200 halls in 244 locations in Europe. In addition, AMC is among the pioneering movie theater operators in bringing innovations to cinema lovers, whether they are sound systems and projection technologies or seating arrangements. That’s why AMC Theaters are on the brink of bankruptcy, posing a great danger for the cinema world.

AMC Theaters Caught Unprepared For This Outbreak Due To Their Investments In The Recent Years

The monthly operating costs of AMC are said to be an average of $ 155 million. AMC has $ 265 million in resources and $ 332 million in credit. When these figures are taken into account, it can be seen that the company will be able to survive until the end of June, unless movie theaters are opened. However, movie theaters are not expected to open before July. Moreover, even if the movie theaters are reopened, it is estimated that the audience will be cautious about going to the cinema in the first period. This shows that it is inevitable to pull the bankruptcy flag for AMC if there is no help from outside.

The main reason why AMC is on the brink of bankruptcy while its competitors such as Cinemark and Cineworld have survived is that the company has been unprepared financially for this epidemic due to its investments in recent years. The company, which has opened new movie theaters around the world in recent years, has also invested to make significant improvements in its existing theaters. In addition, the company, which created a Sinemia-like system that allows viewers to watch a certain number of movies for a monthly subscription fee with the AMC A-List program, has agreed to lose in the first months of this initiative, forecasting that it will profit in the future. However, the outbreak of this epidemic at the time when the AMC A-List was finally beginning to profit, turned the company’s plans upside down.

AMC took 600 corporate employees, including Adam Aron, CEO of the company, for free to overcome this crisis. He also announced that starting this month, he will not pay rent for movie theaters until it is reopened. However, Wall Street analysts are quite skeptical that these moves will suffice.

At this point, the most likely way for the company to get rid of bankruptcy seems to be the activation of the studios. It is estimated that studios such as Disney, Warner Bros., Universal will not allow a company that is of great importance to bring their films such as AMC Theaters together with the audience. However, no steps have been taken in this direction so far.
 
G

GenErik

Veteran Member
Yogizorch said:
Plus, just like airplanes, they never clean those seats.….or floors....or armrests.
Click to expand...
There is a small locally owned movie theater near us. We know before this all started they deep cleaned every week. They shutdown a couple weeks ago, but before they did the employees were told to see where people were sitting and make certain to wipe those areas down before the next movie started.
 
B

Bumblepuff

Veteran Member
3w72qa.jpg
 
Blacknarwhal

Blacknarwhal

Let's Go Brandon!
Movie theaters were already in decline, sad to say. I've been seeing their closure coming for the last decade, but the first-run advantage and the "theater experience" kept them going. That and a whole lot of changes. They added daycare, dinner, new furniture...all of that helped. This, though, is just too big.

There were already a lot of compelling reasons for the home theater, and this one? This one's just the latest. Though it could be the biggest.
 
packyderms_wife

packyderms_wife

Neither here nor there.
Housecarl said:
Posted for fair use.....
www.somagnews.com

AMC Theaters, the World's Largest Movie Theater Chain, Was on the Verge of Bankruptcy for the Outbreak

AMC Theaters, the world's largest movie theater chain, is on the verge of bankruptcy due to the coronavirus outbreak. According to Wall Street analyst
www.somagnews.com www.somagnews.com

AMC Theaters, the World’s Largest Movie Theater Chain, Was on the Verge of Bankruptcy for the Outbreak


By
Leonard Manson
-
April 10, 2020

AMC Theaters, the world’s largest movie theater chain, is on the verge of bankruptcy due to the coronavirus outbreak. According to Wall Street analyst Eric Handler, the company will have to disclose its bankruptcy by July at the latest.


Since social isolation is of great importance in controlling the coronavirus epidemic that causes fear all over the world, one of the first measures taken was to close the movie theaters. Movie theaters were closed all over the world due to the epidemic. Moreover, since the outbreak has not been brought under control yet, it remains unclear when they will open.

It was already known that this would put independent movie theaters in a difficult process all over the world, and perhaps many would have had to close their doors by not going through this process. However, the latest information revealed that some of the big movie theater chains may not be able to overcome this crisis. According to a recent report by Wall Street analyst Eric Handler, AMC Theaters, the world’s largest movie theater chains, are on the verge of bankruptcy due to the coronavirus outbreak.

Founded in 1920, AMC Theaters has 8200 halls in 661 locations in the United States and 2200 halls in 244 locations in Europe. In addition, AMC is among the pioneering movie theater operators in bringing innovations to cinema lovers, whether they are sound systems and projection technologies or seating arrangements. That’s why AMC Theaters are on the brink of bankruptcy, posing a great danger for the cinema world.

AMC Theaters Caught Unprepared For This Outbreak Due To Their Investments In The Recent Years

The monthly operating costs of AMC are said to be an average of $ 155 million. AMC has $ 265 million in resources and $ 332 million in credit. When these figures are taken into account, it can be seen that the company will be able to survive until the end of June, unless movie theaters are opened. However, movie theaters are not expected to open before July. Moreover, even if the movie theaters are reopened, it is estimated that the audience will be cautious about going to the cinema in the first period. This shows that it is inevitable to pull the bankruptcy flag for AMC if there is no help from outside.

The main reason why AMC is on the brink of bankruptcy while its competitors such as Cinemark and Cineworld have survived is that the company has been unprepared financially for this epidemic due to its investments in recent years. The company, which has opened new movie theaters around the world in recent years, has also invested to make significant improvements in its existing theaters. In addition, the company, which created a Sinemia-like system that allows viewers to watch a certain number of movies for a monthly subscription fee with the AMC A-List program, has agreed to lose in the first months of this initiative, forecasting that it will profit in the future. However, the outbreak of this epidemic at the time when the AMC A-List was finally beginning to profit, turned the company’s plans upside down.

AMC took 600 corporate employees, including Adam Aron, CEO of the company, for free to overcome this crisis. He also announced that starting this month, he will not pay rent for movie theaters until it is reopened. However, Wall Street analysts are quite skeptical that these moves will suffice.

At this point, the most likely way for the company to get rid of bankruptcy seems to be the activation of the studios. It is estimated that studios such as Disney, Warner Bros., Universal will not allow a company that is of great importance to bring their films such as AMC Theaters together with the audience. However, no steps have been taken in this direction so far.
Click to expand...

This was one of the stories I read this morning, the only way they will survive is to get into the online streaming game like the others has done, period. Otherwise stick a fork in 5hem 5heyre done, even Redbox is struggling, we don’t have a DVD player that will interface with any of our smart TVs.
 
packyderms_wife

packyderms_wife

Neither here nor there.
Blacknarwhal said:
Movie theaters were already in decline, sad to say. I've been seeing their closure coming for the last decade, but the first-run advantage and the "theater experience" kept them going. That and a whole lot of changes. They added daycare, dinner, new furniture...all of that helped. This, though, is just too big.

There were already a lot of compelling reasons for the home theater, and this one? This one's just the latest. Though it could be the biggest.
Click to expand...

A sixty inch flat screen won’t set you back that much these days.
 
O

Old Gray Mare

TB Fanatic
changed said:
Return of the drive in theater. I'm for it.
Click to expand...
This Drive-in has been a favorite treat maybe once or twice a summer. The movie sound is broadcast via a radio station. We didn't go last year. Now I'm hoping the family owned and operated business can survive the CV quarantine.

Haars+Logo+2018-9b811175-584w.png

www.haars.com

Haar's of Dillsburg PA | Auction and Drive In Theater

Over 60 years supporting our community. Haars Drive In, enjoy first run movies at our outdoor drive in theater located in Dillsburg Pennsylvania. Haars Auction, weekly estate auctions and specialty sales happening throughout the year. Third generation family owned small business in Central...
www.haars.com www.haars.com

The following notice was posted on their website.
CDC recommends that for the next 8 weeks, organizers cancel or postpone in-person events that consist of 50 people or more throughout the U.S
Update 3/30/2020
 
packyderms_wife

packyderms_wife

Neither here nor there.
Blacknarwhal said:
You'd be amazed what soundbar speakers can do, too. You can have the five or seven-speaker surround if you want it, but a soundbar will do surprisingly well.
Click to expand...

That’s we saw at Sam’s club recently. When we replace the flat screen in the family room we’ll consider a sound bar, until then the Vizeo will do just fine.
 
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Blacknarwhal

Blacknarwhal

Let's Go Brandon!
packyderms_wife said:
That’s whale saw at Sam’s club recently. When we replace the flat screen in the family room we’ll consider a sound bar, until then the Vizeo will do just fine.
Click to expand...

If money weren't an object I think I'd be going with a Samsung OLED. Those things put up some amazing images. Wish it were easier to get nature shows on Blu-ray; you put those on an OLED and it's almost clearer than being there.
 
Elza

Elza

Veteran Member
packyderms_wife said:
One of the biggest chains said it won’t be reopening this morning, saw several articles from multiple sources throughout the day.

The reality is most people now own fairly decent home theater systems and the6 buy movies online to stream. Popcorn is cheap and easy to make, hit 5he dollar store for candy and soda pop, and boom you can watch a movie in your pjs in the comfort of your own home.
Click to expand...
And I can hit the pause button so I can go pee without missing part of the movie.

EDIT: Oops. Posted before I saw your follow up post.
 
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packyderms_wife

packyderms_wife

Neither here nor there.
Blacknarwhal said:
If money weren't an object I think I'd be going with a Samsung OLED. Those things put up some amazing images. Wish it were easier to get nature shows on Blu-ray; you put those on an OLED and it's almost clearer than being there.
Click to expand...

Tv in the kitchen is a Samsung 5he picture is light years ahead of the ten year old Vizeo in the family room.
 
jward

jward

passin' thru
Our theater group just finished restoration of one of our historical theaters--- I love those that I've seen, hate to think they'll finally lose their place in our squares...but I adapt or die out is the way of the world eh.
 
packyderms_wife

packyderms_wife

Neither here nor there.
blackjeep said:
TV in the kitchen?! You go girl!! :lol:
Click to expand...

Yes originally that tv was in my basement studio and I brought it upstairs in 2008 when 8 was canning food and it never left, that tv eventually died and was replaced with a Samsung tv, a smaller one but it’s nice to have the company when I’m canning or even cooking today’s meal.
 
D

Donald Shimoda

In Absentia
Howdy, Folks!

I remember VCRs in the late 70s to early 80s, when pre-recorded videos were just starting to become a thing, along with video rental shops.

The feature I noticed immediately was the pause (and stop) button(s).

Oh, sure - all the other controls and options were nice, but the ability to pause (or stop) and resume one's video at a later time was the game changer.

As others have already mentioned in this thread - get up stretch, walk around, go get a snack, go to the bathroom, go out with friends, go get dinner, you name it.

I saw those two buttons as the beginning of the eventual end of the movie theater.

Sad, too - I love movie theaters, especially old classic ones. I especially love old classic theaters which run old classic and cult films.

Movie theaters will probably go the way of opera - a sublime, exclusive experience that's a special occasion and only available for limited viewings.

Maybe they will go the way of Vaudeville (the decline of Vaudeville was accelerated by the cinema), or perhaps more apropos - old radio programs like "The Shadow" and "The Bickersons;" check out a sampling of stuff you've either forgotten or never heard of:

List of old-time radio programs - Wikipedia

en.wikipedia.org en.wikipedia.org

Like so many things from the past - they will change, and eventually, fade even from memory...

Peace and Love,

Donald Shimoda
 
Doc1

Doc1

Has No Life - Lives on TB
Blacknarwhal said:
You'd be amazed what soundbar speakers can do, too. You can have the five or seven-speaker surround if you want it, but a soundbar will do surprisingly well.
Click to expand...


We just connected our big, flat screen to my old fashioned, 200 watt analogue stereo and it will blow you away. Audio and video is cheap these days. Who needs a movie theater?

Best
Doc
 
Blacknarwhal

Blacknarwhal

Let's Go Brandon!
Doc1 said:
We just connected our big, flat screen to my old fashioned, 200 watt analogue stereo and it will blow you away. Audio and video is cheap these days. Who needs a movie theater?

Best
Doc
Click to expand...

It's all about the ratios. Sure, the screen in a theater is bigger than anything you could get at home, but you're also a hundred feet or more from it. If you're only 15 feet away, you can reduce the screen size six-fold and still come out ahead.
 
W

WalknTrot

Veteran Member
Bah. Things will get back to normal eventually.

I'm seeing proof aplenty that people can't stand themselves, their families or their lives without freeking out...and "getting away from it all". Shopping, bars, restaurants, theaters. Most will take "risks" to go out for entertainment real soon. They will especially "take risks" to satisfy their own wishes, with no regard for others.
 
packyderms_wife

packyderms_wife

Neither here nor there.
Doc1 said:
We just connected our big, flat screen to my old fashioned, 200 watt analogue stereo and it will blow you away. Audio and video is cheap these days. Who needs a movie theater?

Best
Doc
Click to expand...

My thoughts exactly and if you want movie-style snacks the local dollar stores have two aisles of the stuff including the ready to be popped popcorn with that weird butter sauce concoction, for a tenth of the price of what you'd pay at a theater.
 
Blacknarwhal

Blacknarwhal

Let's Go Brandon!
packyderms_wife said:
My thoughts exactly and if you want movie-style snacks the local dollar stores have two aisles of the stuff including the ready to be popped popcorn with that weird butter sauce concoction, for a tenth of the price of what you'd pay at a theater.
Click to expand...

You want movie-style popcorn? Pretty simple.

You need a stove top, pot, coconut oil and Flavacol butter-flavored seasoning salt.

You make it like THAT, your kitchen will smell like the multiplex, in a good way.
 
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