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Author Topic: AMC Buying Older, Smaller Multiplexes Recently Lyle Romer Phenomenal Film Handler Posts: 1400 From: Davie, FL, USA Registered: May 2002 posted 05-01-2015 07:09 AM                     I don't know if this is happening in other markets as well but in South Florida, AMC has been making some strange acquisitions in the past year. First they acquired the Frank (formerly Sunrise Cinemas) Sunrise 11 and are operating it as the AMC Sunrise 8. It was originally the Fox Sunrise 8 and Sunrise Cinemas split 3 auditoriums to make it 11. I don't know if AMC un-split them or if they are using some for kitchen space to convert to dine in. A couple of months ago, they acquired the outdated Weston 8. Neither of these locations were retrofitted with stadium seating. Now I have heard that they are going after another late 80's 8-plex in the area. This one has been retrofitted. I'm curious about this new AMC strategy. It is strange that the company that started the Megaplex revolution (and seemed to be racing towards the first centenaplex) would be suddenly wanting a bunch of 25+ year old multiplexes.  |  IP: Logged Marcel Birgelen Film God Posts: 3357 From: Maastricht, Limburg, Netherlands Registered: Feb 2012 posted 05-01-2015 07:39 AM                     Maybe they're just buying out the (potential) competition?  |  IP: Logged Martin McCaffery Film God Posts: 2481 From: Montgomery, AL Registered: Jun 99 posted 05-01-2015 08:10 AM                        A few years ago AMC bought the Rave Festival Plaza here in Montgomery (the very first Rave, btw), it was also the only Rave that Carmike didn't buy in Alabama (maybe the south). AMC bought it because they wanted to establish a presence in Alabama. How much presence does AMC have in the South? They may just be buying up to get a market share (as well as blocking the competition). Not sure how well it is working out for AMC in Montgomery. A new Carmike opened about a year after the AMC and it seems to be doing serious damage. And the shopping center AMC anchors is going into a death spiral.  |  IP: Logged Lyle Romer Phenomenal Film Handler Posts: 1400 From: Davie, FL, USA Registered: May 2002 posted 05-01-2015 08:37 AM                     As far as competition, the locations that they picked up are nowhere near any of their other locations down here. As far as market presence, prior to these pickups they had the insanely busy Aventura 24, and then 2 other, normal locations. Once of them, the Coral Ridge 10, I think they turned into a dine in theatre. What's interesting about these pick-ups, is that they had an 8 screen 10 minutes from the Weston 8 (and in an easier to access location) that they closed 6 or so years ago. It has since been taken over by other operators (currently Paragon). They also closed an 8-plex in Boca Raton, FL probably 12 years ago that has since become an iPic (with a period of 2 other operators in between). Also, the location that I've heard they are going after was a GCC build that AMC could have had when they bought GCC out of bankruptcy if they wanted it.  |  IP: Logged Bobby Henderson "Ask me about Trajan." Posts: 10973 From: Lawton, OK, USA Registered: Apr 2001 posted 05-01-2015 09:41 AM                     The dichotomy of strategies between what AMC did with older theaters several years go and what they're doing now could be a result of AMC's new ownership. Wanda's executives could be calling those shots. The decisions may not make any sense to people who have been with AMC for a long time, but they have to do what their new bosses are telling them to do. Acquisitions of older, arguably obsolete theaters either to pump up overall screen numbers of the circuit or to simply monopolize various markets reminds me of Carmike's push a decade ago. Their former CEO wanted Carmike to be the first chain with 5000 or more screens, never mind if some or a lot of those screens weren't any good. They never reached the 5000 screen mark. Instead the overhead of all those acquisitions, combined with the costs of a stadium seating conversion campaign and then conversion to digital helped plunge them into bankruptcy. Wanda is a bigger company and may be able to afford to lose a whole lot more money buying out old theaters for market domination and/or bragging rights.  |  IP: Logged Terry Lynn-Stevens Phenomenal Film Handler Posts: 1081 From: Toronto, Ontario, Canada Registered: Dec 2012 posted 05-01-2015 10:22 AM                     quote: Lyle Romer I'm curious about this new AMC strategy. It is strange that the company that started the Megaplex revolution (and seemed to be racing towards the first centenaplex) would be suddenly wanting a bunch of 25+ year old multiplexes. It is strange that they are purchasing older 25+ year complexes as there usually is very little value in them. On the other hand, building a brand new complex is probably too expensive and taking over an older site (even if it is vacant) will keep the competition from entering the zone.  |  IP: Logged Jason Whyte Expert Film Handler Posts: 132 From: Victoria, BC, Canada Registered: Sep 2002 posted 05-01-2015 11:39 AM                        "I don't know if AMC un-split them or if they are using some for kitchen space to convert to dine in." I think you answered your own question! Seems very likely that AMC will take these smaller builds and either upgrade them to dine-in OR their leather chair type cinemas in the near future. Only reason they would purchase the older cinemas.  |  IP: Logged Richard Fowler Film God Posts: 2392 From: Ft. Lauderdale, FL, USA Registered: Jun 2001 posted 05-01-2015 01:53 PM                     AMC is also moving older Digital hardware to these new locations.  |  IP: Logged Mark Campbell Expert Film Handler Posts: 148 From: Seattle, WA USA Registered: Jul 2007 posted 05-01-2015 03:43 PM                     AMC also took over and revamped the old UA Marina Del Rey 6 across the street from their Dine-In converted Marina Del Rey 6 Plex. In the Seattle area they are holding onto a 6-Plex (Oak Tree Cinemas) and an 8 Plex (Factoria Cinemas). Factoria has just recently gone digital and an employee said they are getting new seats. Has not happened yet. Oak Tree has old seats as well. Both are older SRO builds that made their way to AMC via Loews Cineplex.  |  IP: Logged Jonathan Goeldner Phenomenal Film Handler Posts: 1360 From: Washington, District of Columbia Registered: Jun 2008 posted 05-01-2015 04:30 PM                     AMC reopened / renovated the Rivertowne 12 theater in Oxen Hill Maryland to little fanfare - it now feature plush recliners and reserved seating.  |  IP: Logged Scott D. Neff Theatre Dork Posts: 919 From: San Francisco, CA Registered: Oct 1999 posted 05-02-2015 01:10 PM                        There is one reason and one reason only they're buying these old theatres: To put in recliners. AMC has seen it work well enough now that when they put in recliners, the grosses go up. So why not take an old theatre that an independent was able to operate while it was run down, and put a little money into it and watch the grosses go up? I have to imagine that the landlords gave them very favorable deals to do so as well or they wouldn't have done it. AMC had the Loews Spring 10 in Spring, TX (N. Houston). It was 1984 original up until last winter when they remodeled it with recliners. I heard that the business went from non-existent to beating out the brand new Cinemark that was built up the road. That was a location that the public all but abandoned, and now there's new life in it.  |  IP: Logged Manny Montes Master Film Handler Posts: 270 From: United States Registered: Feb 2010 posted 05-05-2015 08:56 PM                     Ding ding ding! We have a winner. AMC is buying these complexes and at the very least adding recliners and their MacGuffins bar. At some locations they are making it a dine in theater as well (however from what i've heard, they getting away from this due to the immense payroll cost). In addition they are initially pricing their tickets below their competitors possibly in an effort to drive out competition only to later raise them again. They are getting huge buy-ins from the landlords as you can imagine, since it brings new life to the shopping centers they are in. Funny that the coral ridge was mentioned, currently their tickets are 3-4 dollars cheaper than their nearest competition during the matinee shows and that's for a full dine in. These have not been without bumps, if you look at their yelp reviews you'll see they still have some growing pains to deal with. All in all, an interesting concept.  |  IP: Logged Eric Hooper Jedi Master Film Handler Posts: 532 From: Fort Worth, TX, USA Registered: May 2003 posted 09-23-2015 11:21 PM                     What happened to the Factoria cinemas in Bellevue Washington? Did it close?  |  IP: Logged Mark Campbell Expert Film Handler Posts: 148 From: Seattle, WA USA Registered: Jul 2007 posted 09-24-2015 12:40 AM                     The Factoria is being upgraded to AMC's leather recliners along with other updates and is scheduled to reopen on November 20th. I stopped by and got photos of all the old seats coming out. Happy it is sticking around but a little sad it will be losing a lot of its SRO-ness. Still - my favorite place to take my kids - a large parking lot rather than a garage seals the deal. Can't wait to see their reaction when they get to kick back.  |  IP: Logged Dennis Benjamin Phenomenal Film Handler Posts: 1445 From: Denton, MD Registered: Feb 2002 posted 09-28-2015 11:22 AM                        quote: Jonathan Goeldner AMC reopened / renovated the Rivertowne 12 theater in Oxen Hill Maryland to little fanfare - it now feature plush recliners and reserved seating. I have been told verbally that this theatre did some ridiculous grosses in the first three months of operation. I'm sure you can check Rentrak to verify this info. From the numbers I am hearing - I'd be buying up old multiplexes and putting recliner seats in them too...  |  IP: Logged

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