Adam Aron, the CEO of AMC Theatres, has gone on to condemn the decision that has been taken by Warner Brothers. He said that this move is pretty shortsighted and will destroy the film industry as a whole. Actually, the production company wants to release its entire lineup of films coming out in the 2021 catalog in theatres. Although, as a bit of twist, they will simultaneously release these projects on HBO Max.
Aron started by explaining his thoughts by saying all the theatre chains initially supported the decision made by Warner Brothers. They thought the company would release Wonder Woman 1984 in theatres as well as HBO Max. He called this move an exception to the usual practices for just one film. Adam says that it was made because the Corona Virus has impacted the whole year, and such times can be dubbed as unchartered waters. According to him, everyone could find themselves indulged in its effect at some point or the other.
This step by Warner Media cannot be accepted!
However, he went on explaining that Warner now really hopes to do this for the entire films that are going to release in 2021. He says that vaccines are literally just right around the corner, and thus, everyone can expect the theatre’s business to recover very soon. Clearly, Adam says, as we all can see that Warner Media is trying to sacrifice a huge portion of their movie studio division along with the whole production partners and filmmakers so that they can boost their startup of HBO Max.
Well, this was a pretty hard comment that he did on the media conglomerate. Adam says that as for his company and chain of theatres, everyone is going to make sure that Warner Brothers do not take this huge step at the expense of their theatres. Economic terms that preserve their business is aggressively going to be pursued by him. Adam says that their team has already scheduled an immediate and urgent dialogue with Warner Brothers’ leader, who is taking this decision.
Warner Bros. Decision led to a subsequent fall of stocks in these companies!
After this announcement made by Warner Media, a sudden fall of 17 percent happened in the stocks of AMC. This happened on the same day that the company came up with the idea of selling their 200 million shares to raise the money of 844 million US dollars. You guys should also know that the stock of Cinemark has also fallen by even more than 21 percentage.
Also, we have Marcus Corporation in the lineup, whose stocks have fallen by 11 percent. Although, we had IMAX who took a hit as well, and this has slid to more than 7.3 percent. At this point, we saw that AMC, along with other theatre chains, was already coming across some of the tough scenarios because of the coronavirus.