A renowned pop icon, fresh off a billion-dollar global tour, is set to launch her concert film in cinemas, and AMC is eager to profit from it—promptly.
Why Pfizer remains a top stock choice
The US-based theatre chain intends to schedule a minimum of four screenings per day every Thursday, Friday, Saturday, and Sunday upon the release of Taylor Swift’s Eras Tour concert film on Oct. 13. The film will premiere in the US, Canada, and Mexico.
Following the announcement of Swift’s film yesterday (Aug. 31), AMC’s stock value increased by 9.2% during intraday trading. However, by the end of the day, those gains had been offset—possibly a reflection of the wider industry's downturn after a successful summer.
The simultaneous release of Barbie and Oppenheimer on the weekend of July 21 took the box office by surprise, propelling AMC’s shares up by 33%. After the so-called Barbenheimer high subsided, AMC declared and executed a reverse 10:1 stock split, leading to a drop in the stock's value.
The Barbenheimer summer might have been an anomaly. Analysts do not foresee the box office returning to pre-pandemic levels until 2024 or 2025, a sentiment shared by Adam Aron, AMC's CEO. The company could benefit from a post-summer boost. It's no surprise, then, that AMC is eager to leverage the potential success of the Taylor Swift concert film.
568: The number of AMC locations across the US. This implies it will screen at least...
...2,272: Taylor Swift concert film shows daily from Thursday to Sunday
$19.89 + tax: The cost of an adult ticket for the Eras Tour concert film
$13.13 + tax: The cost of a child or senior ticket for the film at all locations, excluding AMC’s branded premium large-format screens
$12.55: AMC’s closing stock price yesterday (Aug. 31), a stark contrast to...
...$551.38: AMC’s highest-ever stock price on June 2, 2021, a result of the meme stock frenzy where retail investors inflated the price of traditional companies by coordinating their holdings on Reddit
In anticipation of high demand, AMC has strengthened its website and ticketing systems to accommodate more than five times the current record for the most tickets sold in an hour, according to a company press release.
Despite these preparations, AMC acknowledged that no ticketing system in history seems to have been able to handle the overwhelming demand from Taylor Swift fans when tickets first go on sale. The company warned of potential Ticketmaster-like mishaps that frustrated fans attempting to purchase tickets to Eras concerts.
AMC warned of potential delays, unusually long waiting times for ticket purchases, and possible system outages.
AMC stated that the Eras film “represents the first step in a new business direction for AMC Entertainment.”
Besides screening the film in its own theatres, AMC is also acting as the theatrical distributor, securing locations and screens with several other cinema operators. It has already struck deals with Cinemark (US), Cineplex (Canada), and Cinepolis (Mexico). AMC anticipates that other cinema operators will join the list.
TAYLOR SWIFT | THE ERAS TOUR Concert Film Official Trailer
🎟️ No one needed Barbenheimer more than AMC
💰 The billion-dollar tour
🎤 Beyoncé and Taylor Swift are set to surpass the record holder for the highest-grossing tour of all time.