AMC Entertainment, one of the leading movie theater chains in the United States, is set to introduce a significant increase in advertising before films starting Tuesday. This change comes as a result of a newly established partnership with the advertising powerhouse National CineMedia. This move is part of AMC’s strategy to bolster its revenue amid challenging market conditions and will allow for ads to be featured in the highly desirable “platinum spot,” which is the time slot just before a movie begins. AMC’s preshow material typically spans between 25 to 30 minutes and includes not only trailers but also a variety of promotional content.
The announcement of this advertising deal was made in early June, and it marks a pivotal shift for AMC Entertainment, who has faced a tough financial landscape recently, experiencing its most challenging first-quarter earnings since 1996, excluding the pandemic years. The partnership with National CineMedia, which provides ad services to several major theater chains, is expected to provide AMC with a necessary financial boost. This collaboration enables the theater chain to tap into additional ad sales revenues, which are critical for its operational stability.
Interestingly, AMC had previously rejected a similar partnership with National CineMedia back in 2019, when its competitors Regal Cinemas and Cinemark Theatres entered into agreements with the ad company. At that time, AMC firmly refused their offer, arguing that American moviegoers would react negatively to the prospect of increased advertising before films. This earlier stance has now been reversed as AMC recognizes the sustained participation of its rivals without any detriment to their attendance.
“This shift in strategy is not only a response to the industry’s pressing financial realities but also showcases a realization on AMC’s part that their competitors have been able to navigate such advertising initiatives without adverse effects on their customer base,” AMC clarified in a statement to Bloomberg last month. This concession is a reflection of the mounting pressures AMC is encountering from an industry struggling to recover fully post-pandemic, compounded by the impacts of the 2023 strikes by actors and writers which disrupted numerous film release schedules.
Furthermore, the rise of streaming services has led to increased competition for traditional theatrical viewing, thus adding to the urgency for AMC to explore various strategies to stay afloat. The company has already made considerable cuts, closing down 169 theaters since 2019, as reported by CEO Adam Aron. Despite these challenges, during the company’s recent investor call, Aron attempted to project optimism regarding AMC’s outlook, labeling the dismal Q1 results as a “distorting outlier” and highlighting the anticipated resurgence of box office numbers for the remaining year.
Faced with a reported decline in ticket sales for 2024, which totaled $8.7 billion—a 3.3% decrease year-over-year and a staggering 23.5% drop compared to the pre-pandemic figures of $11.3 billion in 2019—there appears to be some hope in the summer box office season. Paul Dergarabedian, a senior media analyst at Comscore, remarked on the timing of National CineMedia’s pre-show programming roll-out, suggesting that it aligns well with what is shaping up to be a strong summer movie season, characterized by multiple blockbuster releases anticipated in July.
Dergarabedian highlighted that AMC’s substantial influence could place this advertising opportunity directly before an engaged audience, which stands to enhance revenue and potentially stabilize ticket prices while improving the overall customer experience—critical elements for ensuring the company’s success in the long term. With the 2025 box office already approaching $4 billion, partly buttressed by the recent success of Disney’s “Lilo & Stitch” remake—a film that has grossed over $380 million domestically—there is a cautiously optimistic outlook for the future of cinema attendance and revenue generation.
