Word got out today that the No. 1 exhibition circuit, AMC Theatres, will start running more advertising during their pre-shows beginning July 1.
Why is this a big deal? Bigger than the taxation of trade routes? Because AMC close to six years ago said it wouldn’t partake in National CineMedia’s new ad spots. At the time, AMC believed more ads would make moviegoers mad.
Well, AMC has changed course. Other rivals are already running longer ads during their pre-shows. Exhibition can’t survive on film rentals alone.
Essentially, AMC has hammered a deal with National CineMedia Inc. to run the spots during each movie’s pre-shows. National CineMedia is the ad network in major circuits.
There’s a “platinum spot” that will be shown on screens just prior to a movie’s start. AMC will reportedly get a cut of the ad sales.
Said an AMC spokesperson, “For the past five years, AMC has sought out crucial revenue that is not reliant on the increase of base ticket prices. We’ve done this through more and better moviegoing enhancements like our significant expansion of PLFs, a greater selection of food and beverage offerings, and the introduction of movie-going merchandise like popcorn buckets and other collectable concession vessels. During that same time, others in our industry have taken in revenue through their partnership with NCM, via these so-called Platinum Spots.”
They added, “While AMC was initially reluctant to bring this to our theatres, our competitors have fully participated for more than five years without any direct impact to their attendance. This is a strong indication that this NCM preshow initiative does not negatively influence moviegoing habits. Our participation delivers us vital revenue as we continue on our recovery path and allows us to continue offering significant value on ticket prices through initiatives like Discount Tuesday, 20% off matinee pricing, and the upcoming 50% off Wednesday ticketing program.”
Bloomberg first had the story about AMC’s pre-show ads.