What New Yorkers Think About Movie Theaters Reopening
American cinemas are encouraged by the resumption of work in New York
Cinemas hit by the pandemic were encouraged by New York Governor Andrew Cuomo’s announcement that they could reopen on 23 October..
It is worth noting that we are talking about state theaters, not New York City. However, this news was still perceived by the market very positively, increasing AMC Entertainment shares up 17% on Monday, Cinemark by 11%, and Marcus Theaters by 2.5%.
«Governor Cuomo’s executive order marks a monumental step forward for the entire film industry», – AMC CEO said on Monday Adam Aron.
New York is an important target for the film market. Although it only accounts for about 6% of total ticket sales, it has traditionally been considered an entertainment hub.. Films that perform well in New York can generate buzz and help sell tickets in other parts of the country..
«We managed to open cinemas all over the country. We can now open in New York State, which means resumption of operations in the heart of the region is just around the corner.», – Aron thinks.
Cinema owners hope that «Wonder Woman 1984» will remain on the list of Christmas premieres. Film studio Warner Bros is one of three major releases scheduled for the rest of 2020. The other two – this is «The Croods Housewarming» from Universal and «The main character» by 20th Century.
Market participants are optimistic, but remain realistic. They hope that high-profile premieres will not be pushed back to 2021, and they want guarantees from the studios.. Cinema owners have already spent too much money and effort on increasing security measures and marketing costs, so another postponement of screenings could deal a fatal blow to the industry..
New content is vital for networks large and small. It is very difficult to get people interested in going to the cinema without new projects.. Aron compared this to a car dealer who advertises and sells the same car for several years..
Last weekend new movie «Honest thief» from Liam Neeson in a public role grossed $ 3.7 million in the first weekend, making him the leader of the current box office. For comparison, exactly a year ago, the Disney sequel was released «Maleficents» earned more than 10 times more.
«Like the aviation industry, we are only doing a fraction of what we did a year ago. However, the question is not what we did yesterday, but what we will do over the next three, six, nine months. I think that finally, with the opening of New York, we can look forward to a bright future.», – said Aaron.
This is particularly good news for AMC, which only warned investors last week that the combination of low attendance and limited premieres led to an urgent need for additional funding. The company stated that it has funds may run out by the beginning of next year, if circumstances do not change for the better.
The world’s largest movie theater chain has been raising funds for several months and already renegotiated its debt earlier this year to improve its balance. Its current attendance is down 76% from last year..
The company, which has a market value of $ 332 million, has plummeted nearly 60% this year..