In a lengthy interview with Variety, AMC CEO Adam Aron explains how his company has managed to stay afloat over the last three years and his expectations for the future at the world’s largest exhibitor.
Aron is a polarizing figure, having many fans and detractors. Some have praised his skill in navigating the enormous disruptions of the pandemic in 2020 and 2021 as well as last year’s labor strikes. Others take a more jaundiced view of his tenure as CEO, which began in 2016. In the three years before the pandemic, Aron pursued an aggressive growth strategy to acquire rival theatre chains.
While this allowed AMC to amass a larger footprint of locations, it also came with a mountain of debt that the company has struggled to manage. Some criticize Aron as being better at creating headlines than running a profitable business. In his interview with Variety, Aron joked that “the only bad publicity is your obituary.”
While the pandemic and strikes created unprecedented disruptions, the “Reddit Rally” in early 2021 was an equally unprecedented financial event that fell in AMC’s favor. An army of retail investors banded together to boost AMC’s share price to more than 35 times higher than it had sunk at its lowest point. This allowed AMC to use investor assets to pay down billions in its outstanding debt and even acquire a handful of new locations in important markets. Aron acknowledges the 2021 Reddit Rally, saying that it saved the exhibitor from draconian restructuring.
AMC has also taken steps to make some of their good luck, striking a distribution deal with popstar Taylor Swift for her ERAS TOUR movie, which became the highest-grossing concert film of all time. They also made a positive statement with the infamous “We Make Movies Better” marketing campaign featuring Nicole Kidman, which boosted awareness for the exhibitor. The spot has become beloved by many as an anthem for moviegoing.
Questions remain about the AMC’s future, as they still hold $2.8 billion in debt which needs to be repaid by the end of 2026. With 2024 on track to generate lower revenues than 2023, let alone the pre-pandemic highs of 2019, many wonder if AMC will be able to stay out of bankruptcy.
Aron dismissed those concerns, pointing to an optimistic forecast for the box office in 2025 and 2026, which he sees as coming in “much, much bigger.” Aron highlighted the continued investments his company is making in installing luxury seating, equipment auditoriums with Premium Large Format technologies, and expanding food and concessions options as reasons for thinking that AMC’s best days are just around the corner.