AMC Theatres to Increase Pre-Movie Ad Time, Angering Moviegoers

Moviegoers, prepare for more ads before the feature presentation. AMC Theatres, the largest movie chain in the U.S., is planning to increase the amount of pre-movie advertising starting in July. This decision, made in partnership with National CineMedia (NCM), aims to boost revenue without raising ticket prices, as the cinema industry continues its financial recovery post-COVID-19 pandemic.

The move marks a notable shift for AMC, which previously resisted placing ads in the coveted “platinum spot” right before the movie begins. In 2019, AMC publicly rejected NCM’s proposal, citing concerns that U.S. moviegoers would react negatively. Though,NCM went on to secure agreements with AMC’s rivals,regal and Cinemark,demonstrating the potential revenue stream.

Why the Change of Heart?

The decision to increase advertising reflects the ongoing financial pressures faced by movie theaters. Despite efforts to recover from pandemic-related losses, cinemas are seeking new revenue streams to remain viable. According to a recent report by the National Association of Theater Owners, box office revenue in 2024 was still 20% below pre-pandemic levels, highlighting the need for innovative financial strategies.

AMC’s statement to The New York Times suggests they are prepared for potential backlash, emphasizing that the decision aims to avoid raising ticket prices. The company noted that competitors have been running similar advertising formats for years without a noticeable impact on attendance.

Did You Know? The global cinema advertising market is projected to reach $4.67 billion in 2024, showcasing the significant revenue potential for theaters.

What to Expect

Under the new agreement, AMC and NCM will share revenues generated from the increased pre-movie advertising. While the exact length of the pre-show and the types of ads viewers can expect remain undisclosed, it is indeed anticipated that the “platinum spot” will feature high-value commercials targeting a captive audience.

the move raises questions about the impact on the moviegoing experience. Will the increased ad time deter audiences, or will it be a tolerable trade-off for maintaining stable ticket prices? Only time will tell.

Here’s a summary of the key players and their roles:

Potential Benefits and drawbacks

The increased advertising could provide a much-needed financial boost to AMC, allowing them to invest in theatre upgrades and maintain competitive ticket prices. Though, it also risks alienating moviegoers who value the uninterrupted cinematic experience.

Pro Tip: Consider arriving at the theater closer to the scheduled movie start time to minimize exposure to the increased advertising.

The decision also raises broader questions about the future of cinema advertising. As streaming services continue to gain popularity, movie theaters are under pressure to find new ways to attract and retain audiences. Will increased advertising be a sustainable solution, or will it ultimately drive viewers away?

What are your thoughts on this change? Will increased pre-movie advertising affect your decision to go to AMC Theatres? Share your opinions in the comments below.

how do you think movie theaters can balance revenue generation with maintaining a positive customer experience?

Share this article with your friends and fellow moviegoers! What are your thoughts on the increased advertising? Leave a comment below and let us know!