Moviegoers should prepare for an extended barrage of advertisements at AMC Cinemas, as reports indicate that the cinema chain is set to increase the duration of commercials before films.
This change, which will take effect in July, is part of a new collaboration with National CineMedia (NCM), a prominent cinema advertising firm, and aligns AMC with its major competitors who have already embraced longer ad slots.
The decision aims to bolster revenue streams without imposing higher ticket prices, a necessity as theaters continue to navigate the financial repercussions of the COVID-19 pandemic, as highlighted by The Hollywood Reporter.
Notably, AMC will now feature commercials in the coveted “platinum spot,” the segment immediately preceding the film, a significant shift from its 2019 stance when it rejected NCM’s proposal for ad placements in that prime location.
At that time, NCM successfully secured agreements with AMC’s competitors, Regal and Cinemark, further emphasizing the competitive landscape of cinema advertising.
In a statement released in September 2019, AMC Theatres clarified that it has no intention of implementing commercial advertising just before the start of films in its U.S. locations. The cinema chain also indicated that it does not foresee entering into any agreements with National CineMedia (NCM) regarding this matter in the near future. AMC explicitly rejected the idea of introducing a premium advertising slot at the conclusion of trailer presentations, citing concerns that such a move would likely provoke a strong negative reaction from American moviegoers. This decision reflects AMC’s commitment to prioritizing the viewing experience of its audience, ensuring that the focus remains on the films rather than commercial interruptions.
AMC prepared for backlash
AMC has yet to provide a response to regarding the recent developments, but in a statement to The New York Times, the company indicated that it was bracing for potential criticism and backlash
. The chain emphasized that the decision in question would not have a financial impact on its customers, suggesting a focus on maintaining customer satisfaction despite any negative reactions that may arise from this announcement.
This proactive stance reflects AMC’s awareness of the sensitivities surrounding its business decisions and its commitment to ensuring that patrons feel secure in their financial commitments to the theater chain.
In a recent statement to the New York Times, AMC revealed that over the last five years, the company has actively pursued alternative revenue streams that do not depend on raising the base price of tickets.
The statement further noted that although AMC was initially hesitant to implement such strategies in its theaters, it has observed that competitors have successfully engaged in these practices for more than five years without experiencing any negative effects on their attendance figures.
This acknowledgment highlights AMC’s recognition of the evolving landscape of the cinema industry and its efforts to adapt to market trends while maintaining customer engagement.
According to The Hollywood Reporter, both AMC and National CineMedia (NCM) are anticipated to collaborate on revenue sharing from a newly introduced pre-movie advertising segment.
However, National CineMedia has not provided a response to inquiry regarding this development.
The specifics surrounding the duration of the pre-show and the types of advertisements that will be featured remain unclear, leaving audiences uncertain about what to expect during this new advertising window before the main feature begins.
According to a report from The Hollywood Reporter, both AMC and National CineMedia (NCM) are anticipated to benefit from a revenue-sharing arrangement stemming from the newly introduced pre-movie advertising segment.
This development marks a significant shift in the advertising landscape within cinemas, as it allows both companies to capitalize on the growing demand for advertising space before films begin. However, despite inquiries from
, National CineMedia has yet to provide a response regarding this matter, leaving some questions unanswered about the specifics of the partnership and its potential impact on the cinema experience.
