As studios prepare to ramp up their production of films, there may be one less theater to release these films. AMC Theaters, the world’s biggest movie theater chain, stated has “substantial doubt” it can remain in business after closing locations across the globe during the COVID-19 pandemic. In a regulatory filing Wednesday, the company stated,
” It expects to have lost between $2.1 billion and $2.4 billion in the first quarter of 2020″.
“We are generating effectively no revenue,”
“Even if governmental operating restrictions are lifted in certain jurisdictions, distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally, which may further limit our operations,” the company said.
“We believe we have the cash resources to reopen our theatres and resume our operations this summer or later,” AMC said. “Our liquidity needs thereafter will depend, among other things, on the timing of a full resumption of operations, the timing of movie releases, and our ability to generate revenues.”
The rise of VOD during the pandemic has also increased the likelihood that the movie-going experience may be changed forever.
