As AMC Theatres reports a strong box office quarter and reiterates its plan to help claw its way out of debt, its top executive also has a message for moviegoers and studios: we’ve heard your feedback on how much pre-show content there is.
On an earnings call, CEO Adam Aron discussed a recent deal to show pre-movie advertising before features begin as part of a new pact with National CineMedia, in large part because rivals Regal Entertainment and Cinemark had been doing so for years. “We’re not cutting back the agreement that we put in place with National CineMedia that is contractual for many years to come,” he told analysts.
But he added AMC was cutting back on “marketing material” pre-show, including where patrons are urged to turn off their phones. “It’s not that there’s been a change of heart,” Aron argued. He added some cinema-goers welcomed viewing trailers, “but we also know that some other consumers think the package has gone too long, and we’re trying to find a happy medium.”
Aron reiterated AMC had overcome initial reservations to now follow rival exhibitors and start showing pre-movie advertising. He added AMC chose to embrace the new revenue stream that Regal and Cinemark had long pulled in. The new deal with National CineMedia runs through 2042.
At the time the deal was unveiled, in June, AMC had stated, somewhat defensively: “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.”
Aron’s earnings call comments appear to be a concession that the chain, the largest in the world, also understands that it needs to be seen as proactive about keeping its experience tolerable for moviegoers.
“It is a simple reality, and hopefully a harbinger of things to come that as AMC’s revenues grow, our EBITDA can soar,” Aron repeated on the analyst call as he touted the company’s cash flow performance.