Earlier this week as Cineworld – owner of Regal Cinemas – announced that they are considering filing for bankruptcy, AMC Entertainment stock plummeted roughly 40%. With these reports, the continuing trend of economic decline in the movie & entertainment industry became even more apparent as we continue to immerse ourselves in the rapid rise of online streaming.
While theaters were being closed across the country during the COVID-19 pandemic, AMC was saved from a 70% collapse by the social media & trading trend known as “meme stock” – in which social media users on platforms such as Twitter and Reddit create hype surrounding a certain stock to drive up it’s value with little rhyme or reason – the harsh reality is that AMC was already on a gradual decline since 2017.
While the pandemic has proved to be a catalyst in the demise of movie theaters across the country with thousands being forced to shut their doors for good, Americans have found even more comfort in staying at home and enjoying new movies from their very own living rooms. As of 2022, 85% of households in the US have at least one streaming service subscription, and that number is only expected to rise.
So by the 2030s, will we view movie theaters like we view Netflix’s Mail-Order service, Drive-In Theaters, or worse…Blockbuster Video? Just relics of a recent yet nostalgic past?
Only time will tell.