AMC CEO teases change in movie chain business model, but teases details
AMC chief Adam Aron says he has a surprise awaiting his investors, but he won’t say what it is.
In an interview with the Milken Global Conference, Aron first told FOX Business that the world’s largest moving movie theater chain will soon undergo a significant change in its business model. He declined to go into details, but said the change would highlight the new direction he was taking for the company.
AMC is one of the memes stocks responsible for galvanizing small investor interest during the pandemic, propelling stocks to significant heights over the past year, even as the company has billions of dollars in debt and continues to lose. money. AMC’s troubles started before the pandemic with the rise of streaming services such as Netflix and HBO leading people to watch movies at home instead of going to the movies. The company came under further criticism during the COVID-19 pandemic when theaters were forced to close. However, Aron, the former CEO of Norwegian Cruise Lines and the Philadelphia 76ers basketball team, has earned respect on Wall Street for his innovative approach to running the business despite these obstacles.
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Under Aron, AMC now offers sports event views, will soon accept cryptocurrency as a payment method for tickets and refreshments, and has even launched its very first nationwide ad campaign, putting AMC back on the map. In recent weeks, movie attendance has increased across the United States thanks to pandemic re-openings and the release of several blockbuster films.
As a company, AMC has also been able to capitalize on the equity craze even as shareholders have taken the stock to new heights, but some analysts still remain skeptical. Rich Greenfield of LightShed Partners even went so far as to put a penny value on the stock.
Aron did not comment on the company’s share price, but said he believes the upcoming business model changes will benefit AMC shareholders in the long term and that good things are ahead for the company. company.
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âPeople forget that (Amazon founder Jeff) Bezos was once criticized for buying an online portal to buy books,â Aron said. “He broke new ground and looks at where Amazon is at today. We hope to go in the same direction.”