AMC's 50% discounts are here. Will it help revive the movie industry?

CNN

7 days ago

With the rising popularity of streaming services and increasing costs of attending a movie — from tickets to refreshments — movie theater attendance has suffered.
AMC is trying to change that with 50% ticket discounts on Tuesdays, the most popular moviegoing day, as well as on Wednesdays.
AMC CEO Adam Aron cited 'overwhelmingly positive guest response' for expanding the 50% discount to Tuesday tickets in a press release.
'A lot of theaters have seen the positive impact of instituting a weekly discount day. And right now, it's very telling to see the No. 1 chain in the country and in the world institute a second one,' Daniel Loria, editorial director at BoxOffice Pro, told CNN, adding that other chains could follow suit to attract customers.
A monthly streaming subscription can cost as low as $7.99 — far less than a $25 premium screening in New York or Los Angeles.
But for consumers, the decision still comes down to the price of a movie compared with other outings, said Loria.
Going to the movies can be cheaper and easier than attending sports events, an amusement park or a concert. At the extreme end, prices for those kinds of events can even run into the thousands.
But consumers still care about the increased cost of going to theaters compared to staying at home, according to Jackie Brenneman, founding partner of cinema industry consultancy The Fithian Group. Expanding discounts could dispel the notion that paying for a movie ticket isn't worth the money and effort, but theaters' pricing is a secondary incentive, and theaters need more dynamic offerings, she added.
While ticket sales are an important source of revenue, theaters also make money come from subscription programs, concessions and merchandise.
Subscription models, such as allowing moviegoers to watch a set number of movies per week for a monthly cost, are one way theaters have tried combating streaming services without pricing out consistent moviegoers.
At AMC, for instance, an A-List subscriber can watch four movies a week by paying $25.99 a month. Regal Cinemas, the No. 2 US movie chain, offers a similar model, Regal Unlimited, with a base plan of $21.49 each month for an unlimited movie pass and a 10% discount on concessions, among other benefits.
Theaters have also hopped on a trend of unveiling pricey special edition popcorn buckets and franchise-specific merchandise.
Some merchandise doesn't land well with audiences, warned Shawn Robbins, director of analytics at Fandango and founder and owner of Box Office Theory.
'But all of this, viewed as a whole, is just broadening what the moviegoing experience is to a customer when they buy a ticket,' he said.
Meanwhile, Hollywood continues to churn out big-budget films that moviegoers could prefer to see in theaters rather than on a flatscreen, computer, tablet or smartphone.
'Consumers are going more often to bigger blockbusters, and they're watching them on the most premium format available. So they are actively choosing the most expensive ticket price out there,' Brenneman said.
There are far fewer movie screens today than there were before the pandemic, when attendance dropped off a cliff. In 2024, there were roughly 35,481 cinema screens, a 9% decline from 2022 and a 13.8% decline from 2019, according to data provided by research firm Omdia.
There have been signs of a rebound, as the overall box office has seen gain after studios have shifted from the 'streaming exclusive' mentality, says Loria. A slow first quarter due to some underperforming movies was countered by a strong second quarter and a record-breaking Memorial Day weekend for Hollywood.
According to Comscore data, the box office is up 15% year-to-date versus 2024 due to the second quarter rebound. But earnings for 2025 are still down 24.1% compared with 2019.
Discounted tickets are one method to capitalize on that moviegoing momentum, providing a boost for theaters like AMC and struggling malls and shopping centers where theaters have served as destination points. A study by Beacon Economics estimates that for every dollar spent on movie nights, $1.50 is added to the economy.
The success of recent hits, like Universal Pictures' 'Jurassic World Rebirth' and Warner Bros. Pictures' 'Superman' could bolster upcoming releases, like Paramount Pictures' 'Smurfs' and Disney's 'Fantastic Four.'
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Robbins still believes that the summer box office could gross $4 billion — the second post-pandemic year to do so, following 2023.
'There's no perfect balance, but I think (discounts) are positive steps toward that goal of being able to foster that big communal event, but still have these opportunities in the middle of the week when theaters are a little quieter,' Robbins said.