AMC to Test Product Sales in 35 Theaters in 2018

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AMC Entertainment will test sales of licensed products in 35 theaters in 2018, having gained “strong studio support” for its plans, CEO Adam Aron told analysts.

With 20 million customers at its theaters each month and 10 million enrolled in its AMC Stubs loyalty program, AMC can “participate in a bigger slice of movie-related revenue in the U.S.,” Aron said. AMC has over 1,000 theaters.

“We know the studios have a tremendous amount of licensing deals where they are selling merchandise in retail stores around the world,” Aron said. “But in a venue where you would think enthusiasm would be the highest, we have done virtually nothing” in terms of merchandise sales.

AMC tested sales kiosks of film-related merchandise in some theaters with Araca Entertainment in late 2015 with the release of Star Wars Episode VII: The Force Awakens. But Araca isn’t part of the test this time, says Araca’s Michael Rego. AMC is majority owned by Dalian Wanda Group Co., which sells licensed items in small stores in its theaters in China.

“This is a low margin business and it doesn’t have the profit margins of popcorn, soda or liquor, but if we pick up 50 cents a head from merchandise sales, it adds up to real money,” Aron said.”

Contact:

AMC Entertainment, Adam Aron, CEO, 913-213-2000, aaron@amctheatres.com