Variety Summit: Entertainment&Technology
“The future is bright” says Aron, CEO AMC Theatres at Variety Summit
At the Variety Summit in Los Angeles on September 26, 2024, Matt Donnelly, Senior Entertainment & Media Writer for Variety, had an insightful conversation with Adam Aron, CEO and President of AMC Theatres, that illuminated the ongoing resilience and evolution of the movie theater industry. Aron, a key figure in the theatrical business, shared his optimistic outlook on the future of cinemas, despite numerous challenges posed by technological advancements, the rise of streaming services, and the devastating impact of the COVID-19 pandemic.
The conversation opened with a reflection on the industry’s pre-pandemic strength. Aron noted that in 2019, a staggering one billion movie tickets were sold in the U.S. and Canada, surpassing the combined attendance of all major sports leagues. However, this success was abruptly halted in 2020, as the domestic box office plummeted to just $2 billion, largely due to the global pandemic. Yet, in a sign of the industry’s resilience, the box office bounced back to $3.5 billion in the final four months of 2021, signaling a strong recovery.
Throughout the conversation, Aron emphasized AMC’s efforts to not only survive but thrive in a changing landscape. He discussed how AMC successfully refinanced $3 billion in debt, extending repayment until 2030. This financial maneuvering gave the company the flexibility needed to invest in enhancing the theatrical experience. One key area of investment is in technology: AMC has committed over $500 million to installing state-of-the-art laser projection systems, ensuring that moviegoers are treated to the highest quality visuals. Aron proudly shared that currently, a quarter of AMC’s theaters are equipped with laser projection, providing brighter, sharper images. In addition, AMC holds approximately half of the IMAX screens in the U.S., further solidifying its commitment to premium viewing experiences.
Aron also tackled the question of competition, downplaying the threat posed by streaming services and other entertainment innovations, such as the recently launched Sphere in Las Vegas. He acknowledged that while these platforms offer appealing content, they do not directly compete with the theatrical experience. According to Aron, AMC’s true competition is distraction. “It’s not about the quality or appeal of entertainment, but rather the unpredictable interruptions that prevent people from following through with their plans,” he explained. Aron painted a picture familiar to many: a person might intend to catch a 2 PM movie, but by evening, distractions—whether a phone call, unexpected errands, or even changes in the weather—derail those plans.
Aron underscored the idea that the demand for content remains insatiable, but it’s the myriad distractions in modern life that pose the greatest challenge to getting people into theaters. This perspective highlights a more subtle, yet critical challenge for the industry, which is less about competing with streaming giants like Netflix or Disney+ and more about reclaiming the time and attention of potential moviegoers.
In conclusion, Aron expressed a hopeful vision for the future of cinema, confident in AMC’s ability to innovate and adapt. With a focus on enhancing the theater experience and addressing the underlying causes of attendance decline, he believes the moviegoing tradition is far from obsolete. Instead, Aron sees a future where theaters continue to be a cultural cornerstone, providing an unparalleled experience that cannot be replicated at home.
This conversation with Matt Donnelly served as a reminder of how, despite the upheaval of the past few years, the movie theater industry remains a vital part of the entertainment ecosystem, evolving to meet the demands of a changing world.
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“The future is bright” says Aron, CEO AMC Theatres at Variety Summit
At the Variety Summit in Los Angeles on September 26, 2024, Matt Donnelly, Senior Entertainment & Media Writer for Variety, had an insightful conversation with Adam Aron, CEO and President of AMC Theatres, that illuminated the ongoing resilience and evolution of the movie theater industry. Aron, a key figure in the theatrical business, shared his optimistic outlook on the future of cinemas, despite numerous challenges posed by technological advancements, the rise of streaming services, and the devastating impact of the COVID-19 pandemic.
The conversation opened with a reflection on the industry’s pre-pandemic strength. Aron noted that in 2019, a staggering one billion movie tickets were sold in the U.S. and Canada, surpassing the combined attendance of all major sports leagues. However, this success was abruptly halted in 2020, as the domestic box office plummeted to just $2 billion, largely due to the global pandemic. Yet, in a sign of the industry’s resilience, the box office bounced back to $3.5 billion in the final four months of 2021, signaling a strong recovery.
Throughout the conversation, Aron emphasized AMC’s efforts to not only survive but thrive in a changing landscape. He discussed how AMC successfully refinanced $3 billion in debt, extending repayment until 2030. This financial maneuvering gave the company the flexibility needed to invest in enhancing the theatrical experience. One key area of investment is in technology: AMC has committed over $500 million to installing state-of-the-art laser projection systems, ensuring that moviegoers are treated to the highest quality visuals. Aron proudly shared that currently, a quarter of AMC’s theaters are equipped with laser projection, providing brighter, sharper images. In addition, AMC holds approximately half of the IMAX screens in the U.S., further solidifying its commitment to premium viewing experiences.
Aron also tackled the question of competition, downplaying the threat posed by streaming services and other entertainment innovations, such as the recently launched Sphere in Las Vegas. He acknowledged that while these platforms offer appealing content, they do not directly compete with the theatrical experience. According to Aron, AMC’s true competition is distraction. “It’s not about the quality or appeal of entertainment, but rather the unpredictable interruptions that prevent people from following through with their plans,” he explained. Aron painted a picture familiar to many: a person might intend to catch a 2 PM movie, but by evening, distractions—whether a phone call, unexpected errands, or even changes in the weather—derail those plans.
Aron underscored the idea that the demand for content remains insatiable, but it’s the myriad distractions in modern life that pose the greatest challenge to getting people into theaters. This perspective highlights a more subtle, yet critical challenge for the industry, which is less about competing with streaming giants like Netflix or Disney+ and more about reclaiming the time and attention of potential moviegoers.
In conclusion, Aron expressed a hopeful vision for the future of cinema, confident in AMC’s ability to innovate and adapt. With a focus on enhancing the theater experience and addressing the underlying causes of attendance decline, he believes the moviegoing tradition is far from obsolete. Instead, Aron sees a future where theaters continue to be a cultural cornerstone, providing an unparalleled experience that cannot be replicated at home.
This conversation with Matt Donnelly served as a reminder of how, despite the upheaval of the past few years, the movie theater industry remains a vital part of the entertainment ecosystem, evolving to meet the demands of a changing world.
Share:
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