Movie Theaters Shutter, Maybe For Good

Movie Theaters Shutter, Maybe For Good

Xavier Silva, Reporter

In June of 2020, AMC Theaters, the world’s biggest chain of movie theaters, reported that they have “substantial doubt” they’ll be able to remain in business. Due to the coronavirus pandemic, the company was generating virtually no revenue and had lost over $2.4 billion. Although some theaters began reopening back in the late summer, many of them were forced to shut down permanently and the ones that are open can only operate at a limited capacity. This significant loss of revenue along with the new restrictions on conducting business have put serious strain on AMC and the movie theater industry as a whole. In early October, it was reported that AMC is likely to exhaust all cash resources by the end of 2020 or the beginning of 2021. The coronavirus pandemic has hit theaters hard, and that begs the question: will movie theaters survive 2020?

Unfortunately, things are looking grim, as movie theater companies have been ravaged by the pandemic. Not only did these companies lose billions of dollars in profit during the early months of the pandemic, but now they seem to be losing their purpose. With blockbuster movie such as Wonder Woman 1984 having their release dates delayed, why would anyone need to go to the movies? Although AMC did attempt to hold a blockbuster release of The Tenet, it only grossed $45 million domestically which was drastically low for a film that had a budget of $200 million. Due to the limited capacity and public concern for safety, movie theaters simply won’t be able to make money like they did before. With the lack of success a marquee movie like The Tenet had, studios are very weary of theatrical releases at this time, with many opting for online releases such as the movie Trolls World Tour. The film had only a budget of $90 million, yet was able to make over $100 million in rentals within the first three weeks of releasing online. With bigtime movies being delayed and the growing popularity of online releases, movie theaters across the country are in trouble.

The future of movie theaters is uncertain, and although companies are making quick cash grabs by lowering stock prices and renting out theaters for cheap, it may not be enough to keep themselves afloat. After 2020, going to the movies may never be the same.