On Thursday, AMC Entertainment CEO Adam Aaron will continue to operate the cinema despite one of his top rivals choosing to temporarily dim the screen during the coronavirus pandemic. Defended the company’s decision.
“I think keeping it open is the right decision,” Aaron said on CNBC’s Closing Bell. “Since reopening this summer, millions of people have come to theaters in the United States, and certainly in Europe.”
Aaron pointed out the historic deal signed with Universal Pictures in July as the reason AMC is in a position to keep the theater open. The agreement reduces the time that Universal movies had to be shown at the AMC Theater before moving to on-demand streaming from 90 days to 17 days.
“We will reduce both theater and housing income, which is an agreement signed by AMC,” Aaron said. “Our competitors haven’t reached that point yet.”
The lack of blockbuster movies was the main reason why Regal Cinemas’ parent company Cineworld stopped operating in theaters in the United States and the United Kingdom. CEO Mooky Greidinger told CNBC on Monday that it had become “a kind of grocery store with no food to sell.”
Aaron acknowledged that the lack of a new blockbuster is a challenge in motivating people to come to the theater compared to car dealers who don’t sell new cars.
Still, Aaron said in a deal with Universal that there are upcoming releases such as “The Croods: A New Age,” scheduled for the day before Thanksgiving.
“From now until Christmas Day, five universal films will be screened, and AMC will be able to screen as a result of that agreement,” Aaron said.
After receiving permission from the state to resume operations, AMC is proceeding with additional resumption plans, including Washington. By mid-October, the company plans to open more than 80% of its approximately 600 theaters, but New York’s major markets remain closed.
Aaron defended AMC’s coronavirus safety protocol, including enhanced cleaning and restrictions to maintain social distance. He also said there was a need for a cinema in the pandemic.
“We are in a business that entertains and entertains people. If there were times when people needed to entertain and entertain in order to escape the stress of everyday life, Corona struck the country very hard. It’s now. “He said.
AMC’s share price rose 2.48% on Thursday to close at $ 4.14 per share. Inventories in 2020 have fallen by 42.8% so far.
Disclosure: NBCUniversal is the parent company of Universal Studios and CNBC.