AMC Entertainment, the biggest multiplex operator in the globe, will introduce an iTunes-style online video store within the United States on Tuesday, said Adam Aron, AMC’s president and chief executive. The service, AMC Theaters On Demand, will provide about 2,000 films for sale or rent after their theatrical runs, just like iTunes, Amazon, and alternative video-on-demand retailers do. The movie theater industry has long been in competition with the online video. Sure, new films don’t arrive on video on demand, till they have played in theaters for an exclusive period of about 90 days.
But that windowing practice, several analysts say, can become unreasonable as streaming services like Netflix gain popularity. Though DVDs still account for billions of dollars in sales for studios, more profit currently comes from digital downloads and rentals.
Some theater chains in other countries already operate on-demand divisions, however, AMC is the initial major exhibitor in the United States to do so. Mr. Aron said AMC had been working on this service for more than 2 years. Under Mr. Aron, AMC has worked to make the theater more engaging. They installed advanced Dolby sound and projection systems, extra-wide screens, and La-Z-Boy-style seats.
In 2017, Mr. Aron rolled out elaborate food menus at more than 600 theaters. It acquired the Carmike chain in the U.S. and added Odeon in Britain and the Nordic Theater in Europe. The company’s share price was worth $8.95 at the close of trading on Monday, down from more than $20 a year ago.
