AMC Theatres CEO on Nicole Kidman’s Next Ad and Partnering With Streamers Like Apple and Amazon

Streaming services were once the enemy of cinema chains such as AMC Theatres, mostly because companies like Netflix didnt believe in the value of the big screen. But for whatever reason (perhaps a desire to turn a profit), the attitude toward multiplexes has changed and tech giants like Apple and Amazon have committed to spending billions on theatrical movies. Its a move thats been widely embraced by exhibitors, who desperately need more films to fill their marquees.

We certainly welcome their movies with open arms, says Adam Aron, the CEO of AMC, the worlds largest movie theater circuit. We will happily show anything they want to take to theaters.

It may take some time for Apple and Amazon to have enough product to debut these movies with consistency. Until then, AMC has a secret weapon in enticing audiences to the big screen with the highly anticipated sequel to its viral ad, starring Nicole Kidman.

Im not sure when were going to do it this year or next year, says Aron. Well try to live up to your expectations when the time comes.

Aron sat down with Variety at CinemaCon, the annual Las Vegas-based gathering of movie theater owners, with a passport inexplicably in the front pocket of his button down shirt, to discuss the obstacles facing the film industry, the companys current debt levels and the status of Kidmans next AMC commercial.

As CEO, whats your No. 1 priority for AMC right now?

My No. 1 priority today in April of 2023 is exactly what its been for the last three years, which is to make sure I guide AMC through this hard pandemic and its aftermath. In March of 2020, every single one of our theaters were shut. Companies arent designed to have no revenue. We literally went from having $450 million a month of revenue to nothing in the span of one week. And ever since then, its been a dogfight to defy gravity and outlast this pandemic. So far, AMC has done that really well. Ive thought for some time that the pandemic was going to be a five-year detour for our industry. And a month ago, we just completed the third year. We still have a year or two ahead of us before its just a bad memory.

Are you concerned about AMCs current debt levels?

Im not concerned at all.

Will it hurt the companys ability to move forward?

Im not worried about our debt at all. Were in court in Delaware right now about a shareholder vote that would give us the ability to raise equity pretty much at will. Im hopeful we can get through that process. When you add our ability to raise capital, along with a rising box office, Im very optimistic about our future.

At one point you talked up Saudi Arabia as a growing market, but AMC has recently divested in the territory. What was the reasoning?

Because of the pandemic, we needed cash. Our Saudi partners were willing to buy out our stake in the joint venture. We wanted to have more cash. Youve seen what happens to movie theaters that run out of cash. Its a bleak story. And Im absolutely committed to making sure that AMC never runs out of cash.

Having said that, when we started the effort in Saudi Arabia not that Im going to show you the contracts but if you look at the joint venture contracts were drafted in 2018, we always envisioned that [eventually] they would manage the business and we would just become a licensor. Being able to bring some $30 million back to the U.S. to our treasury, it became an easy decision. We have not left Saudi Arabia. Our name is still on the door. Its just that were the franchisor and not the manager.

Do you plan to divest in any other territories?

Just this weekend, I talked to somebody about adding a lot of AMC theaters in another country. But were not at a point yet where I can name which country that is. And weve been adding theaters in the United States. There are other movie theaters circuits were talking to in North America right now about possibly growing AMC by absorbing some or all of their theaters into our fleet.

Theater owners say a big challenge has been studios releasing fewer movies. Whats the ideal number of releases per year?

You just described the central problem of the movie theater industry. There were about 145 releases in 2019, and 70 to 80 in 2022. So its no surprise the box office was a fraction in 2022 of what it was in 2019. This industry has plenty of capacity. We can easily handle 140 or more movies going forward, just like we did in 2019. Theres no lack of screens. We could handle a lot more movies than we currently have. But the good news is that were going to get more movies. I think the wide release count in 2024 is going to be higher than 2023. And we know the release count in 2023 is going to be considerably higher than 2022.

What can movie theaters do to generate more attention for smaller, non-tentpole movies?

We spend a lot of time and effort on this. A few years ago, we created something called Artisan Films, which is a special designation we put on some smaller and medium-sized movies that we thought could build a real audience. In addition, we have greatly increased our outbound communication efforts to moviegoers, telling them whats going to play this weekend. And we are gearing those communications based on your personal track record. So if you like horror movies, we talked about horror movies coming up. If you like rom-coms, we dont talk to you about horror movies, we talk about rom-coms. We also created A-List, our subscription program, so that going to the incremental movie is free. And then were reminding some filmmakers that its not enough just to make the movie. You also need to market the movie.

Have you been in conversation with Apple and Amazon about their plans to bring movies to theaters?

Yes, and were thrilled that Amazon and Apple look like theyre going to embrace theaters as a distribution channel. At AMC, we certainly welcome their movies with open arms. As I said before, we have plenty of capacity. Weve been in dialogue with both. Each of them has movies this year, but Im expecting more movies next year.

Do you know the kind of movies they plan to make?

Thats a question you should ask them, not me. We will happily show anything they want to take to theaters.

Do you ever converse with filmmakers to let them know when their movie is doing well at AMC?

None that I want you to print, because some of them are confidential, private communications. Theres one specific Ill share with you thats not exactly what youre expecting. I started in December of 2021 and by Friday night, I will have personally hosted 23 movie screenings where I actually watch with people in the auditorium. More often than not, the people who show up are AMC shareholders, who commonly brand themselves as Apes, and I talk to them for 20 to 30 minutes before the movie starts. After the movie ends, I stay around afterwards. We take selfies.

I saw you also sign autographs.

I sign some autographs if they want them. We have conversations. I get to talk to a lot of people about how much theyre enjoying movies. Theyll take pictures and tweet them, and I tend to retweet them. And then Ive been known to send some of those to studio people or filmmakers and say, Look how enthusiastic moviegoers are about your movie! Its a bit of a love-fest.

Does it make you feel like a celebrity?

I cannot explain why, but lets just say that our shareholders who show up are enthusiastic about getting to talk.

The most important question: when does AMC plan to release the second Nicole Kidman commercial?

Its being decided right now. Im not sure when were going to do it this year or next year. One version has been written, but whether thats the one we make or not, I dont know. Well all see it together. Well try to live up to your expectations when the time comes.

Did you watch the SNL parody?

I thought it was wonderful. I actually thought our commercial was better than their parody. But Ill tell you how I decided whether I liked it or didnt. If SNL had done that for any other theater chain, would I have been upset? The answer is, yeah. If they had done that for someone elses movie theaters, I would have been crazed out of my mind.

Similarly, I dont know if you were watching the Oscars, but the first gag in Jimmy Kimmels monologue was to Nicole Kidman, about how shed been released from an AMC movie theater. Thats the highest compliment we can be paid. That says our commercial hit the American zeitgeist.

Do you still keep in touch with Nicole Kidman?

Shes happy to hear it. Ill share this with you. On June 10, Nicole Kidman is being honored by the American Film Institute and getting its 49th Life Achievement Award. AMC is going to be a major sponsor of that gala in great tribute to the First Lady of AMC, Nicole Kidman. Becoming associated with her has been one of the smartest marketing decisions that Ive been a part of for the last 40 years.