Movie theatre chain AMC Entertainment Holdings Inc. AMC said it has reached an agreement with AT&T Inc.’s T Warner Bros. to show the studio’s 2022 slate in theatres for an exclusive 45-day window.
What Happened: The deal was announced by AMC Entertainment CEO Adam Aron on the company’s Q2 earnings call on Monday. The company reported a narrower than expected loss for the second quarter while revenue topped estimates.
“It’s especially gratifying that Warner is yet again embracing a theatrical window. And for us at AMC, it’s especially pleasing to be working so harmoniously with Warner Brothers once again,” Aron said.
The CEO noted that AMC Entertainment was “not at all happy” when Warner decided in December that its movies would premiere on its own streaming service HBO Max simultaneously with the theatrical releases.
Warner Bros. had said earlier that it would be returning to cinema-only releases in 2022.
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Why It Matters: Subscription on video demand (SVOD) platforms have emerged as big winners amid the COVID-19 pandemic following the closure of theatres and people being forced to stay at home as a result of coronavirus-induced lockdowns.
Several movies premiered simultaneously on streaming services during the pandemic. However, the shift to streaming platforms by some of the largest entertainment companies left theatres without their normal slate of blockbusters.
AMC Entertainment managed to avoid bankruptcy amid the pandemic and reopened 98% of its locations in March. Gaining access to exclusive content can help AMC return to profitability.
Price Action: AMC Entertainment shares closed almost 3.4% higher in Monday’s regular trading session at $33.80, while AT&T shares closed almost 0.4% lower at $27.85.
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