By Michaela Gordoni
AMC Theaters will have even more ads ahead of its feature film screenings.
In 2019, Cinemark and Regal signed a deal with ad company National CineMedia to show as much as five minutes of commercials after a movie’s slated start time, airing a 30–60 second “platinum spot” before the last one or two trailers. Now, AMC, which is bigger than Cinemark and Regal, is joining the amped-up ads gang, The Hollywood Reporter said.
AMC originally resisted, saying it had “no plan to introduce commercial advertising close to the start of a movie’s commencement at its theatres in the United States, nor does AMC envision entering into such an arrangement with NCM anytime in the foreseeable future.”
Now under financial pressure, AMC is giving in.
“For the past five years, AMC has sought out crucial revenue that is not reliant on the increase of base ticket prices. We’ve done this through more and better moviegoing enhancements like our significant expansion of PLFs, a greater selection of food and beverage offerings, and the introduction of movie-going merchandise like popcorn buckets and other collectable concession vessels,” AMC said.
“During that same time, others in our industry have taken in revenue through their partnership with NCM, via these so-called Platinum Spots,” it continued.
Related: What AMC’s Plan to Run More Commercials Before Movies Means for You
AMC also noted that the change would not negatively effect ticket prices, per USA Today. The change actually allows AMC to keep its discount programs. It says it plans to continue with its Discount Tuesday, 20% off matinee tickets and has an upcoming 50% Wednesday ticket program.
“Our competitors have fully participated for more than five years without any direct impact to their attendance,” AMC said this month. “The new deal between AMC and NCM allows both companies to drive new revenues to offset the impact of being hit by the shutdown of cinemas due to the COVID pandemic, followed by an at times faltering Hollywood industry recovery since the reopening of theaters and advertising being affected by macro-economic headwinds.”
The deal will start July 1, ahead of JURASSIC WORLD REBIRTH and SUPERMAN. AMC already has 25-30 minutes of preshow time, so it will have to move some things around or extend the time to allow for more ads.
EnTelligience reported that 60% of moviegoers were seated when trailers started.
“Moviegoing behavior is shifting and continued experimentation with how to engage audiences is necessary,” the firm’s founder said. The two biggest movie markets in America, New York and California, only have 42% of their moviegoers seated by the time trailer start, which is lower than last year.
With this ads news, numbers just might keep dropping.
Read Next: AMC CEO Adam Aron Talks the Future of AMC Theaters
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