AMC Theatres increases ad presence to boost revenue amid challenges
- AMC Theatres will begin showing additional ads prior to movies as of July 1, 2025, after forming a partnership with National CineMedia.
- The cinema chain previously rejected in-theater advertising out of concern for audience response, but its competitors have seen no negative effects in attendance from similar strategies.
- The decision to increase advertising is a critical response to mounting financial pressures and aims to stabilize ticket prices while enhancing customer experience.
In the United States, AMC Theatres has announced that from July 1, 2025, it will implement a significant increase in advertising before movie screenings. This change comes as part of a new agreement with National CineMedia, a leading cinema advertising platform, marking a strategic shift in the company’s approach to additional revenue generation. This deal involves placing advertisements in the 'platinum spot', which is the time immediately before the movie starts, thus ensuring that a captivated audience is targeted. Previously hesitant about in-theater advertising, AMC's decision reflects the evolving landscape as competitors such as Regal Cinemas and Cinemark Theatres have successfully integrated similar advertising strategies in their business models without notable negative impact on attendance. The company's previous refusal in 2019 was based on concerns over potential backlash from moviegoers, but changing market dynamics and financial pressures have prompted this pivot toward ad sales. AMC has been dealing with significant financial challenges, evidenced by the company's recent report of its worst first-quarter earnings since 1996, outside of pandemic years. The ongoing effects of the COVID-19 pandemic, including strikes that disrupted film releases, and the growing competition from streaming platforms have intensified the need for AMC to explore new revenue streams. CEO Adam Aron remains optimistic about the company’s future, citing a resurgence in box office performance, which led to the decision to introduce this ad initiative at a time deemed favorable by industry analysts. The move to increase advertising is not solely to cover costs but also aims to stabilize ticket prices and enhance customer experience, a priority for AMC amid the pressures of a recovering market. As part of these efforts, AMC Stubs members will also receive a special discount on ticket prices, indicating a strategy that attempts to retain customer loyalty while pursuing additional income through advertising. Going forward, the company hopes this expansion in advertising will provide much-needed financial support and contribute to long-term operational sustainability as it adapts to shifting consumer habits and industry trends.