Thank You For Coming To Loews, Sit Back And Relax, You Had No Choice!

By Scott Smith in Arts & Entertainment on Jun 22, 2005 5:30PM

In a world...where box office receipts are down...two companies will merge...to fight for...The Almighty Dollar! Coming to almost every theater you attend in 2006! That is if AMC Entertainment and Loews Cineplex Entertainment have their way.

With more consumer dollars going towards other entertainment options, AMC and Loews announced they’ll be joining forces to merge into one company (which we totally think should be called Amews Entertainment but we doubt the suits would go for it) to save money on “back office” operations. Yeah, that back office stuff does tend to cost extra.

All the usual quotes are trotted out here: the vague interest from an antitrust regulator, the AMC spokeswoman who says they’re not “anticipating” any layoffs or theater closings, and the not-so-solid argument that ticket prices are down overall (which we addressed here). The Tribune points out that almost all the theaters on Chicago's north side would be operated by one company, which might lead to unfair competitive advantages over smaller theaters. We doubt an AMC/Loews company would bother going after the art house crowds that Music Box and the Landmark cater to but anything’s possible.

For a look at why this merger works for the companies, check out this article from Oligopoly Watch, specifically the section on shelf space oversupply and how it contributes to less people in the seats.

Anyone who’s cared to know how theaters make their money knows that the most profit comes from concession sales. But if people aren’t there to consume your “loss leader” then they can’t buy your big profit-makers either.

With technology becoming less expensive and less intimidating for the average consumer, the “movie experience” is all that the cineplexes have left to offer. As much as people might complain about the idiot on the cell phone next to them or the price of popcorn, there is something exciting about having a communal experience in a movie theater.

So here is Chicagoist’s three-point plan for putting more butts in the seats and popcorn in their hands:

1. Bring back discounted show times. Chicagoist remembers when every show in the early afternoon was a discount. Now unless you get there for the first show before noon, you’re SOL. This strategy attacks the “I’ll wait till video for that one” mentality.
2. Take a tip from the video stores. People typically rent least on Tuesday nights so mom-and-pop stores often feature discounted or free movies on that day.
3. Work the revival angle. IMAX theaters make decent coin by showing older movies on their massive screens because not everyone has the home theater setup. Use one of the 12 screens showing that lame remake to show the original instead.