Can Private Theater Rentals Save AMC and the Movie Industry?
AMC Entertainment Holdings Inc. (NYSE: AMC) was one of the biggest losers as a result of the coronavirus pandemic as many people did not want to be in an enclosed space with others. However, as concerns are lifting as a result of a COVID-19 vaccine coming into play soon, AMC is looking to get back to business, albeit slowly.
The movie theater chain announced on Tuesday that it would be renting out its theaters to private parties. The beta launch took place four weeks ago and saw 110,000 inquiries across the country without any significant marketing or press.
Guests can rent out a showing at any of AMC’s approximately 600 theaters nationwide.
The Private Theatre Rentals at AMC rental fee includes the price of tickets for up to 20 people; there is no minimum food and drink purchase requirement. The prices range from $99 to $349 plus tax, depending on the location.
All showtimes at all AMC locations, including Private Theatre Rentals, stringently enforce the AMC Safe & Clean policies and protocols, designed with the health and safety of our guests and crew in mind. This includes mandatory mask wearing and appropriate social distancing within the auditorium.
Management noted that the results and feedback from its guests about AMC Safe & Clean have been overwhelmingly positive, and Private Theatre Rentals at AMC provides an additional layer of safety and security to those moviegoers who are looking to see movies with just their family members and friends.
Note that the 110,000 inquiries dwarfs the 26,000 private theater rentals in 2019. So there is a market going forward, but it is yet to be seen how much more excitement AMC can really create around these rentals.
AMC Entertainment stock traded down 1% to $3.72 on Tuesday, in a 52-week range of $1.95 to $9.62. The consensus price target is $2.29.
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