AMC Theatres and Other Cinema Owners Weigh in on Ticket Prices, Post-Strike Box Office and the ‘Dune’ Popcorn Bucket
Will pink and black loom large this week in Las Vegas?
After all, this Monday kicks off CinemaCon, the annual exhibition industry trade show and weeklong opportunity for studios and theater operators to wax poetic about the magic of going to the movies. And in 2023, there was no greater manifestation of the claim that the movie business is back than the cultural craze of “Barbenheimer.” The inextricably linked “Barbie” and “Oppenheimer,” complete with double features of the cotton-candy-coated and ultra-dark blockbusters, dominated the zeitgeist for months on end.
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But just as the past can serve as a reminder of the collective joy of moviegoing, last year’s events may also plague the industry. Another inevitable topic at CinemaCon will be the two labor strikes that shut down production for months and forced studios to delay several tentpoles to 2025. The box office was just starting to recapture its pre-pandemic stride, so 2024’s comparatively barren film calendar isn’t particularly helpful.
“It’s easy to be cynical,” says Michael O’Leary, president of the National Association of Theatre Owners, the trade group that organizes CinemaCon. “We aren’t ignoring the reality of the marketplace. But those concerns can be overstated. CinemaCon will be a pep rally, but I’ll challenge our industry to step up.”
As Hollywood heads to Sin City for CinemaCon, Variety spoke to theater owners about what they’re looking forward to having on their marquees, as well as the highs and lows of a business still struggling to find its footing.
Elizabeth Frank, chief content officer at AMC Theatres
593 theaters across North America
What was your biggest takeaway from 2023?
AMC is going to remember it most for its concert films. We have been playing concert films for years, but it was our first time distributing them. We saw box office and guest engagement that we hadn’t ever seen.
Do you expect other exhibitors to get into distribution?
I think we will see it. We’re excited about it and pursuing different opportunities where we see fit. But more than that, the success of those two films [“Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyoncé”] opened a lot of eyes in music, comedy and internet influencer communities. We’re going to see a lot of experimentation and innovation, some of which is theater-led. We’re doing our part.
How is AMC grappling with the aftermath of last year’s strikes?
It’s a real challenge. We’re in an industry where all of our energy is focused on telling consumers about the new movie. When there isn’t one, the whole marketing platform gets quiet. One of the things we’re doing is being more data-driven in marketing films beyond the first weekend. We’re also bringing in additional content, partnering with NBC Sports to bring the Paris Olympics this summer or with Blumhouse to bring back horror classics. A third thing is helping smaller studios to elevate their theatrical campaigns. We’re excited to see A24 bring out “Civil War.” It’s a much bigger film than they’ve released in the past.
Has there been a bigger onus on theaters to market movies to customers?
Yes, but I don’t know if it’s an onus or an opportunity — or a combination of the two. If you think way back, the studios did 100% of marketing and it was up to theaters to just open the box office and collect cash. We’ve moved lightyears beyond that.
How much does AMC plan to lean into collectible popcorn buckets?
Some fans are collectors. There’s another group of people who are specific film fans, buying three different “Ghostbusters” products. It’s all a mix. It’s a material part of our food and beverage business, but it’s not the majority of it. It also makes the movies more fun. It’s like going home from a concert with a T-shirt. There is a lot of creative energy from it. We continue to learn and evolve. We would have never imagined the “Dune” thing. We would have never created it knowing it would be celebrated or mocked.
“Saturday Night Live” parodied the “Dune” popcorn bucket. Was that the ultimate seal of approval?
Absolutely. And you couldn’t make it happen if you wanted to. It wouldn’t be fair to pull our creative talent aside to say, “We hope it makes ‘SNL.'”
Do you think price is a factor in moviegoing?
Price is a factor for some, and price is a factor for some people some of the time. We saw that for big new movies, our most frequent moviegoers were seeking out higher-priced formats and Saturday night screenings even though we offer a matinee value. We serve a broad audience of Americans. When you look at our loyalty program, more people have household incomes under $40,000 than people who have incomes over $120,000.
What’s your prediction for highest-grossing movie of the year?
Conventional wisdom is “Deadpool & Wolverine.” There’s a chance that it’s “Despicable Me 4.” They’re not “Barbenheimer,” but I’d be betting on the combination of the two of them.
Tim Handren, CEO of Santikos Entertainment
27 theaters across Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Texas
What is your biggest takeaway from 2023?
People came back to the movies. The year almost matched 2019 in terms of our revenues. And good content continues to prove out.
What movie was an unexpected winner at your theaters?
“Sound of Freedom” was a huge surprise. Those movies tend to play better in the Bible belt. I think it surprised the studio, too.
What is the biggest challenge facing cinemas?
It is getting over that dearth of production from the strike. When you shut down an assembly line for six months, it takes 12-18 months to catch up. It’s hard to be patient.
How are you offsetting the slower months?
We did an initiative called Fantikos Day. We modeled it after National Cinema Day with deep discounts for one weekend. There were no big blockbusters that weekend, but we saw a great attendance change. We saw that there’s some price sensitivity.
Is there a sweet spot for ticket prices?
The cost of everything has gone up… labor, supplies. Nobody is in this business to not make money. We are continually experimenting, whether it’s the cost of movies or concessions. The question is how permanent to make them. It’s far cheaper than going to a sporting event or a Taylor Swift concert.
How do you prepare when a movie is shaping up to underperform?
We put the same energy behind those as we do for the ones that we think will do well, with the hope that we can help demand. We do a lot of digital advertising. When studios cut back on marketing spends, we had to step up to make people aware of what’s coming out. But look, Rotten Tomatoes is its own marketing machine. When a movie gets a not-great score, people look at that. That’s hard to overcome.
Do you wish that Hollywood made more of any particular genre?
We over-index on horror and family movies. We don’t over-index in San Antonio on things that do well in New York City, like documentaries.
What movie do you predict will be the highest-grossing of the year?
“Deadpool 3.” I’m a big fan, so I might be biased. It became the most-watched trailer ever, which is a good indicator it has a following.
Jeff Whipple, VP of marketing at Megaplex Theatres
15 theaters in Utah and Nevada
What was your biggest takeaway from 2023?
We had some wonderful surprise hits. “Oppenheimer” was a delight. Who knew it was going to play as beautifully as it did? We had a terrific time with “Wonka.” Audiences are coming back, which is good news. Things are starting to stabilize.
Do you wish that Hollywood made more of any particular genre?
Movies that are rated PG or G. Something to bring the whole family plays well at Megaplex. Faith-based films also do well in our market. “The Boys in the Boat” was another example of a film that performed extremely well. I don’t know that everyone in the audience was familiar with the story. We had guests who came to see that movie more than once.
What’s the most popular concession snack?
It’s easily our popcorn. We consider our guests popcorn aficionados. They will tell us when we get it perfectly right, and that’s the goal. We have some fun dessert options. In one of our locations, we offer guests freshly made gelato.
What aspect of moviegoing needs an upgrade?
We’re working hard to expand our offerings to be as inclusive as possible. We’ve introduced sensory-friendly films for those on the autism spectrum. We’re expanding our adapted services, like open caption or secondary language, to make it more user-friendly for guests.
How big of a problem is texting during the movies?
We made adjustments to how to approach that. We have a section that has partial partitions so guests [who want to text ] won’t cause a disruption. It’s something we’re testing, but the response has been strong.
What’s your prediction for the highest-grossing movie of the year?
We’re gearing up for “Wicked.” We have high expectations. Our audience has traditionally shown up with great enthusiasm for family-friendly musicals.
Rick Roman, owner of Crowne Pointe Theatre
One theater in Elizabethtown, Kentucky
What was your biggest takeaway from 2023?
People want to go to the movies if you give them product. Since COVID, we’ve been bound on the number of product. We were probably short 20-30 pictures.
What is the biggest challenge facing movie theaters?
It’s the affordability of going to the theater. Obviously, we need more pictures. But we can price ourselves out of being a good option as entertainment. When you start charging $7.25 for a drink, how much can you keep raising concessions? We try to keep concession prices low. Our prices are the same as they were in 2018. I attribute a lot of growth to being more affordable.
What movie was an unexpected winner at your theaters?
“Sound of Freedom.” We have a strong faith-based community, and it was our top 10 movies of the year. It was a very powerful picture. We had people come out crying.
Do you wish there was more of a particular genre?
Oh, yes. Family animated features. We had “Migration” at Christmas, and Hollywood didn’t give us another family animated film until “Kung Fu Panda 4” in March. That’s three months without a film for families. I wish Hollywood would give us a good family show every month. We have to wait for “Garfield” now [in May] before we get another family feature. Waiting three months to take your kids to the movies is too long.
How are you offsetting the slower months?
When times are slow, we can reduce our labor to match the size of the crowd coming. It helps keep costs down from the business side. We try to be more creative when we have a slow time. In January, we brought back “Sound of Freedom” because it was National Human Trafficking Prevention Month. When it’s slow, you need to give people a reason to go.
What’s the best-selling concession snack?
It’s always going to be the popcorn. The great thing about our popcorn is we’re a Kentucky theater, and we use corn kernels grown in Kentucky. The farmers are within 10 miles of the theater. We get a lot of comments on our popcorn. Our regular popcorn is $7 vs $11 in Louisville. It’s more fun if it’s affordable.
How big of a problem is texting during the movies?
We have very little problems with people on their phones. Knock on wood.
What’s your prediction for the highest-grossing movie of the year?
I’m going with “Wicked.” It comes out around Thanksgiving. It’s set in the land of Oz and based on the successful Broadway show. The trailer looks incredible. I don’t see any “Barbies” this summer.
Gregory Quinn, managing partner of Caribbean Cinemas
600 screen circuit based out of Puerto Rico
What was your biggest takeaway from 2023?
We saw the cultural relevance of cinema with “Barbenheimer” and “Super Mario Bros. Movie.” You can’t create that relevance from any window but the theatrical one.
What do you hope is Hollywood’s takeaway from “Barbenheimer”?
It’s a balancing act. You need proven franchises, but you need to take creative risks to create something new that might resonate.
What is the biggest challenge facing movie theaters?
It sounds cliché, but it’s supply chain. We need a new movie every weekend, not just in the summer and holidays. When there are culturally relevant movies, people will show up.
Is price a factor?
I think so. As an industry, we have to be smarter about dynamic pricing. We’ve gotten more creative for people who don’t want to spend as much at the movies.
What movie was an unexpected winner at your theaters?
“Oppenheimer” would otherwise be a relatively small performer in the Caribbean and Latin America. But “Barbenheimer” brought a lot of attention. “Barbie” was always going to be big, so it put huge wind in the sales of “Oppenheimer.”
What’s your prediction for the highest-grossing movie of the year?
Between “Moana 2,” “Joker 2,” and “Gladiator 2,” we haven’t seen the goods yet. My gut tells me that it’s going to be a Q4 title. Ask me after CinemaCon.
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