Theater chain AMC faces another setback this week, as the company isn’t eligible to receive funding under the new COVID-19 stimulus bill. This has been a challenging year for all facets of the entertainment industry. However, theaters have arguably struggled the most, with the majority closed for the bulk of 2021. In addition to financial issues, chains like AMC have had to reckon with several companies changing their release strategies in the wake of the pandemic. Until fairly recently, Disney made the biggest moves, releasing Hamilton, its live-action Mulan, and Pixar’s Soul on Disney+. However, Warner Bros. soon became a thorn in theater owners’ sides as well thanks to its new hybrid release model for Wonder Woman 1984 and all of its 2021 movies.
All told, theater companies like AMC are in a tough spot. Even if movie theaters are able to begin operating at full capacity in a few months, there’s no guarantee moviegoers will feel safe turning out. The Warner Bros. HBO Max decision also means audiences have less incentive to head to a theater for a good chunk of next year’s would-be blockbusters. Additionally, movie companies at large have come to realize they’re less dependent on the traditional theatrical release model than they once thought; several films performed well this year despite streaming debuts. This new knowledge could spell trouble for the future of the theater industry, even if chains like AMC survive the coming months.
According to the The Wrap, AMC was dealt another blow with the passing of the COVID-19 relief bill. The new legislation earmarks $15 billion for small theaters and other venues. However, as a larger chain, AMC doesn’t qualify for the money.
This is a tough break for the company, which has grown increasingly desperate for help in recent months. In an SEC filing a few weeks ago, AMC revealed it may run out of cash by early 2021. The news about the stimulus bill suggests that could happen sooner rather than later. This would be bad news for both the company itself and proponents of the theater experience.
Of course, it’s impossible to know what will happen with AMC at this juncture. Throughout the year, theater chains have often seemed close to bankruptcy, only to bounce back enough to continue on. However, theaters are at the mercy of studios and their release schedules. This means the situation looks rather dire for AMC and the theater industry at large.
