In a recent statement, the largest movie theater chain in the US, AMC has raised concern that the business may not survive post the Covid-19 lockdown.
Theaters in the US were already facing several challenges before the pandemic and the lockdown. Rising competition from OTT and online streaming platforms had created a major setback for theaters.
Since the industry has halted production owing to the lockdown, theater businesses are expecting a delay in the movies reaching big screens, which may affect the consumer eagerness to spend money at theatres and multiplexes.
In addition, several films have been released on online streaming platforms by skipping theatrical release. This has raised alarm that this trend may continue even when theaters open. AMC has confirmed that the business has enough cash to reopen theaters this summer, but will face a major blow if the reopening is not allowed.
Social distancing measures and limited capacity regulations pose another challenge for the movie theater business as it is unclear how many customers will want to be in enclosed, crowded spaces for a long period of time.