AMC Theatres has agreed to show pre-movie advertising before features begin as part of a new deal with National CineMedia, The Hollywood Reporter has confirmed.
Starting July 1, AMC will run a “platinum spot” with pre-movie commercials alongside traditional film trailers that play for its audiences. And AMC and NCM, the in-theater advertising company, will share revenues from the new pre-movie advertising window.
AMC in a statement explained why it has overcome initial reservations to now follow rival exhibitors and start showing pre-movie advertising.
“While AMC was initially reluctant to bring this to our theaters, our competitors have fully participated for more than five years without any direct impact to their attendance. This is a strong indication that this NCM pre-show initiative does not negatively influence moviegoing habits,” AMC said.
The new deal between AMC and NCM allows both companies to drive new revenues to offset the impact of being hit by the shutdown of cinemas due to the COVID pandemic, followed by a at times faltering Hollywood industry recovery since the reopening of theaters and advertising being affected by macro-economic headwinds.
“Our participation delivers us vital revenue as we continue on our recovery path and allows us to continue offering significant value on ticket prices through initiatives like Discount Tuesday, 20 percent off matinee pricing, and the upcoming 50 percent off Wednesday ticketing program,” AMC added in its statement.
AMC in recent years has looked to create new revenues beyond ticket prices and popcorn and drink sales by bolstering its food and beverage offerings, and introducing merchandise like popcorn buckets and other collectibles.
NCM could not be reached for comment on the new deal with AMC. But when unveiling its recent first quarter results, NCM indicated it had struck a new long-term agreement with AMC Theatres, to run through to 2042.
The new deal apparently included new advertising play in AMC theaters. “The alignment of AMC’s pre-show format with NCM’s platform will standardize and strengthen the value of the Company’s advertising inventory,” NCM told investors in remarks that accompanied its financial results.