AMC needs to find ways to bring more people to its physical space. If you think about AMC is a building with show rooms. You have the ability to get classic food and drinks before you go and watch one of the latest movies. You go to the movies to spend time with family, friends, and acquaintances. But movie watching in theaters has gone down over the years.
This is present in the fact that AMC and other movie houses are seeing gradual declines in visits. Conversely, Disney+, Netflix, and other streaming providers are coming on to the scene and bringing about tons of content. These providers may serve as distributors of other people’s content but are ramping up their delivery of unique content. This unique content is entirely owned and distributed by the respective platform. So now, you have several providers, and several monthly payments to make to get access to specific types of content.
In person movie watching at places like AMC is going down while streaming has been trending up for a while now.
What is AMC to do? Enter the streaming world or find ways to increase overall footprints at their locations? They are doubling down on the latter.
AMC is Betting on Sports
The brand, AMC, has recently announced a deal with the NFL. The deal would make it to where NFL fans can see football games at local AMC theaters. The firm will roll it out at over 30 theaters in more than 20 markets. Sports can certainly draw quite a bit of attention, just ask ESPN, a brand focused solely on sports. But American football draws a lot of viewers, it is certainly popular among many different demographic segments.
The deal will work like this: AMC will show a specific local game that one cannot watch on local channels.
You do not have to pay watch these games. But you do have to pay to become a member of AMC Stubs. At the same time, you will also have to purchase an F&B gift card to have the full viewing experience.
It can definitely be an experience that you want to take full advantage of. The whole point of televised sports is that helps people get together and root for their favorite teams, they can see local and other professional teams come together and compete for points on the board. You come to watch and see if your favorite team is actually up to par and if they will help you win a little cash if you have made a bet or two on different aspects of the game.
But while this could be a great idea, how much more people will it bring to AMC? Will those same people that showed up on the weekend to watch the game also watch a movie afterward? Will they come back some time in the week to watch movies? How do you use this weekend activity to draw more people back during the weekdays?
Is it going to start by partnering with the NFL and then slowly branch out to other games?
The challenge for AMC is to increase its footprints on site while competing against mobile devices, gaming, streaming, and a slew of other forms of entertainment that one may access straight from their laptops or phones.