Assignment

Read the AMC fact sheet for some quick and dirty information on theaters and multiplexes. ( Note: a theater with a large number of screens is called a multiplex.)

What do you think determines the number of multiplexes in a given community?

What factors do you think determine whether it is less costly for a firm to have fewer facilities with more screens (a larger facility) or more facilities with fewer screens ( a smaller facility)?

How do you think a firm like AMC makes its decision?

AMC Fact Sheet Begins here: 

AMC Theatres® (NYSE: AMC) is the customer experience leader. We run the most productive theatres in the country’s top markets. AMC operates eight of the top 10 highest grossing theatres in the U.S., and has the No. 1 market share in the top three markets (NY, LA, Chicago). AMC has propelled industry innovation and continues today by delivering more comfort and convenience, enhanced food & beverage, greater engagement and loyalty, premium sight & sound, and targeted programming.

as of Sept. 30, 2014

 AMC has interests in 344 theatres with 4,959 screens across the United States

 We serve approximately 200 million guests each year with industry-leading guest satisfaction ratings

 AMC’s food & beverage operations, including our dine-in theatres, represent a Top 60 U.S. restaurant chain

 AMC listed on the New York Stock Exchange in Dec. 2013

 AMC is headquartered in the metropolitan Kansas City area, where it has been since its founding in 1920

 AMC employs approximately 20,000 full- and part-time associates

Greater Engagement& Loyalty

 AMC Stubs membership program rewards guest loyalty and enables AMC to direct market to most avid movie-goers

 Facebook page with more than 4.5 million likes and a Twitter feed with more than 249,000 followers

 AMCTheatres.com generates nearly 300 million visits per year

Enhanced Food & Beverage

 15 Dine-In TheatresSM offer dinner and a movie with luxury seats, a full menu and seat-side service

 AMC MacGuffinsTM bars serve beer, wine and cocktails to adult guests in 75 locations

 Broad food and beverage offering, including pizza and other meals, healthier snacks, specialty drinks, andCoke Freestyle® at 133 locations.

Targeted Programming

 Industry leading market shares for multiple titles in 2013, including community programming and blockbusters

 Largest theatres (14.4 screens per theatre vs. 7.4 industry average) enables AMC to bring more diverse titles to an increasingly diverse audience

 Through AMC Independent more

Premium Sight & Sound

 Leading IMAX® exhibitor globally – more than one-third of AMC locations house an IMAX screen (147 theatres)

 RealD® 3D capability in all theatres and fully upgraded digital projection, featuring 4K resolution by Sony Digital Cinema

 AMC’s proprietary premium format, ETXTM, presents movies with superior projection and audio