Home 2020 Many US Cinemas May Never Reopen…

Many US Cinemas May Never Reopen…

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…remembering what is was like to go to the movies.

Dark movie theaters may just be a taste of the near future.

Even before COVID-19 coronavirus completely shuttered projectors at AMC Entertainment (NYSE:AMC), attendance was in decline and streaming services like Netflix (NASDAQ:NFLX) on the rise.

AMC is fighting back, but the idea that America’s cinemas will fill up again may be as strange as a silent film.

With everyone stuck at home, Hollywood has time to figure out more ways to cut out the exhibitors.

Comcast’s NBC Universal released “Trolls World Tour” on 10 April directly to people’s homes and made several other movies already showing on big screens available to rent for $20.

There are differences in theater openings. In general box-office ticket sales are split 50-50 between exhibitors and studios.

With streaming services like Netflix or Amazon.com (NASDAQ:AMZN) or through traditional cable, studios keep about 80% of the take.

The “Trolls” sequel broke 1st-day and opening-weekend records for Universal’s home-entertainment unit, racking up some 10X the prior record receipts for a digital release. It has now brought in nearly $100-M in rentals.

In terms of revenue for Comcast, that makes it more lucrative than the original’s $154-M in gross domestic US box-office receipts to date.

Netflix has changed the game too.

The firm led by Reed Hastings mostly bypasses theaters for its original movies, instead choosing to use releases like “Roma” as a way to hook potential subscribers.

Lockdown has accelerated the company’s subscriber growth.

Many of the largest studios’ parent companies, notably Walt Disney, Comcast and AT&T, now have streaming services.

Disney pushed its upcoming picture “Artemis Fowl” to its online Disney+ platform for a June release rather than wait until theaters reopen.

The number of Americans trekking to box offices is in long-term decline from a high in Y 2002 with 1.6-B tickets sold.

From lockdown AMC, the largest exhibitor in America, Europe and the world, is resisting.

Last Tuesday it said it would boycott Universal’s films in light of the studio parent’s comments about digital releases. AMC’s stock jumped more than 20% the next day, but its market value is still only about 25% of the $2-B it was worth shortly after going public in Y 2013. The fresh damage from the coronavirus chaos may never be reversed.

AMX closed at 4.57, -0.35 a share Friday in NY.

Strong Support is at 3.60, Key Resistance is at 7.21.

HeffX-LTN’s overall technical analysis for AMC is Neutral with a Bullish mid-term, as 3 technical indicators have turned Very Bullish in here

Related Story: Box Office, AMC Theatres Will Not Reopen Til Big Studio Movies are Back

Have a healthy weekend, Keep the Faith!

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