Theater Chains Pin Their Hopes On Two Films
from the doubling-down dept
There’s been a lot of talk about how bad things are for theater owners these days, as the quality gap between what people can get at home and what they can get at the theater continues to narrow. It doesn’t help these companies that Hollywood as a whole is faring poorly, with many questioning the studios’ traditional blockbuster-reliant model. However, two major theater chains, Cinemark and AMC are set to do IPOs soon, amidst a moderate uptick in ticket sales and what’s expected to be a strong summer movie season. Both chains were taken private a few years ago, when market sentiment was particularly negative on these companies. But has anything really changed for them? At the moment, the best argument for them seems to be that this summer will see the release of Spiderman 3 and Pirates of the Caribbean: At World’s End, both of which are expected to be mega-hits. But it’s ridiculous to judge the prospect of these chains on two movies that will come and go over the next few months. If the overall economics of the industry continues to deteriorate, a couple films coming out this summer don’t mean anything. It’s also worth mentioning that Hollywood is once again going back to the sequel well in hopes of drudging up a couple of hits this summer, and yet as one financial analyst puts it, “There’s an unbelievable amount of marketing dollars being spent to promote these films over the next couple months.” So not even the sure things are sure things unless an unbelievable amount of marketing dollars are spent.