AMC Theatres, the largest movie chain in the United States, is facing a serious challenge in getting audiences back to its cinema halls, even with exciting new films hitting the screens. According to their earnings report for the third quarter of 2025, AMC saw its revenues drop to $1.3 billion, which is a 3.5% decline compared to the previous year. Attendance at U.S. theatres also fell by nearly 10%. The average ticket cost reached $12.86, up from $12.19 last year, and even the prices for food and drinks have gone up, now averaging $8.55.
Box Office Hits and Attendance Drop
Interestingly, this drop in attendance happened despite the release of some major films between July and September. Here are the top five box office hits during that period:
- Superman – $354 million
- Jurassic World: Rebirth – $339 million
- Weapons – $151 million
- Demon Slayer: Kimetsu no Yaiba Infinity Castle – $133 million
- Freakier Friday – $94 million
Despite the excitement around these films, many people still chose to stay home instead of heading to theatres. Earlier this year, AMC tried attracting price-sensitive customers by offering discounts on tickets and food. They received backlash, however, when they announced an increased number of commercials shown before movies, leading to longer wait times. Now, films often start 25-30 minutes later than scheduled.
AMC’s Reaction to the Trend
During a recent earnings call, AMC’s CEO, Adam Aron, described the third quarter as “soft” due to a 11% overall drop in the U.S. box office. He did mention that this shouldn’t cause panic, as they expect a rebound in the upcoming months with exciting film releases. He optimistically claimed that the fourth quarter could be the highest-grossing in six years. Some anticipated films include Now You See Me, Now You Don’t, Zootopia 2, and Avatar: Fire and Ash.
Rising Ticket Prices and Concerns
Aron also addressed the rising prices at AMC theatres. The average ticket now costs around $12.24, marking a record high. He noted that ticket prices have skyrocketed at a rate faster than general inflation. To justify these price hikes, he pointed out the law of supply and demand and suggested that AMC will continue raising prices when demand is high, especially on weekends.
However, experts are warning that these price increases could deter moviegoers. Dominick Miserandino, CEO of RTMNexus, voiced concern that AMC’s approach seems risky, especially as attendance continues to decline. A recent survey showed that about 65% of Americans prefer watching new movies at home. High ticket prices and a lack of interest in most films contribute to this trend.
AMC’s Strategy to Attract Customers
To combat this issue, AMC is planning significant changes to make the theatre experience more appealing. They are looking to broadcast live concerts and sporting events, capitalizing on the success of concert films featuring artists like Taylor Swift and Beyoncé. Aron stated that this will be a top priority for 2026.
AMC is also committed to enhancing its IMAX theaters by upgrading projection and sound quality, making the overall experience much more enjoyable. The company is even looking into using artificial intelligence to make operations more efficient and to wow customers. They have also opened discussions with Netflix to collaborate on more content, following the success of a recent sing-along event for the movie K Pop Demon Hunters.
The Future of AMC
Clearly, AMC is striving to adapt while dealing with rising costs and changing consumer preferences. While they’ve faced significant challenges, the hope is that these new strategies will bring moviegoers back. As they continue to innovate and enhance the theatre experience, it remains to be seen whether these efforts will turn things around in a competitive landscape that increasingly favors at-home viewing.
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Original Text – https://www.thestreet.com/entertainment/amc-has-a-major-customer-problem-in-its-theaters