AMC seeks Loews in a merger that makes sense only if you start shutting some doors. Technology quickly obsoletes the standard and right now the standard is they make a movie, you go to the theater to see it.
Changes on the horizon
Movie theaters are hurting. When blockbuster movies are released, the majority of the first weeks� cash goes back to the distributor. It�s the later weeks� ticket sales that go to the house. But more movies are shit and can�t hold an audience. So the movies start big and then die quickly. Much quicker than they used to. In addition, DVDs are being released sooner and sooner. The new average DVD release is 5 months after the theatrical release. It�s killing ticket sales because people are willing to wait.
You�ve merged, now what?
Close those doors. Remember when every chain was building a multiplex with 20+ screens? Time to start shutting those down. Rather than two 20-plexes in a local area, time for just one. Instead of splitting concessions among two theaters one theater gets them all. But you have to make sure the movie experience is clean and rewarding. Fire the slackers and keep those employees who love movies. Employees who are happy to be there and will engage the consumer as a movie lover and not as a kid who needs the job to buy beer.
Come for the blockbuster, stay for the classic
Start showing movies that are best seen on the big screen. No matter how great your home theater system is, Lord of the Rings looks better on a big screen rather then you 32� TV. With every ticket bought on the opening of a blockbuster, you get a coupon to watch one of the classics you are showing. Here�s how it works. I buy a ticket to see Star Wars EP3. I give you $12. You give me my ticket and a coupon for a half price ticket for the month of X good only for re-release movies. I watch EP3 and go home. Next week, when there is no blockbuster I want to see, I notice that you are showing Lord of the Rings. I come back to the theater with my coupon and pay $5 (regular price for re-release films $10 � � off coupon = $5), buy a soda and popcorn and watch the film. The key is to use you best asset (movie screen and sound system) to your advantage.
That�s all for now. Check out Broken Candy�s MOVIE-A-DAY-IN-LA for a classic near you (if you live in LA that is).