Movie theaters owned by AMC may run out of money by early 2021. The chain is only one company affected by the coronavirus pandemic, which decimated the theater industry this year. Many theaters have been closed since March, presenting an unprecedented challenge for companies. Blockbuster film releases have been virtually non-existent in 2020, with Christopher Nolan’s Tenet one of the only exceptions. However, even that movie couldn’t save movie theaters. Instead, its underwhelming box office performance proved the majority of audiences aren’t ready to return to theaters at this time and likely won’t be for awhile.
Now, chains like AMC are aware there’s no end to their problems in sight. Major movies like Hamilton and the live-action Mulan have already foregone traditional theatrical releases this year, in a major blow to theaters. Now, it’s clear a version of that strategy will exist until at least the end of next year, thanks to Warner Bros.’ announcement its entire 2021 lineup will debut on HBO Max the same day it does in theaters. Though AMC supported the hybrid release of Wonder Woman 1984, the company changed its tune after finding out several other films would receive the same treatment.
Considering all the theater industry has faced this year, a SEC filing from this week comes as little surprise. Per Variety, in the filing, AMC stated, “In the absence of additional liquidity, the Company anticipates that existing cash resources will be depleted during January 2021.” The chain suggested it would need $750 million to remain afloat and also specifically mentioned Warner Bros.’ decision in the filing:
These challenges have been exacerbated by the announcement by Warner Bros. that its entire studio film slate for 2021 will move to simultaneous release, which may result in other studios adopting a similar strategy.
AMC makes a valid point about the impact of Warner Bros.’ new release strategy. Not only will it impact WB films like The Suicide Squad, Dune, and The Matrix 4, it could affect other studios’ movies as well. Competitor Disney is still planning theatrical releases for Black Widow and the rest of its 2021 Marvel films. However, the company also just announced an unprecedented number of new projects, many of which are being made exclusively for Disney+. Coupled with Warner Bros.’ release plans and the events of this year, some worry audiences are already starting to expect premiere content they can watch at home.
Though the theatrical experience remains beloved by many, it remains to be seen if companies like AMC will survive the pandemic. Theaters still have fervent supporters, particularly in the directing community. However, without cash flow, that may not be enough. AMC‘s recent filing makes it clear something needs to change, and quickly, or the theater industry as moviegoers know it may cease to exist.
