Final Exam - UPDATED WITH QUESTIONS

For your final, you must analyze the relationship between AMC and MoviePass from the perspective of AMC.  As some of you may know, the two firms have had a contentious relationship in the recent past (see here for some background: https://www.hollywoodreporter.com/news/amc-theatres-wants-block-moviepass-subscription-service-price-cut-1029993). However, the two seem to be back on amicable terms with AMC’s recent decision to allow MoviePass back into its theaters (https://variety.com/2018/film/news/moviepass-lifts-amc-blackout-1202744076/).

I will release the specific questions at 12:01 AM of Friday, June 22, but I suggest you begin your background research.  AMC’s most recent 10k is a great place to start.  Follow the link here to find it:

http://investor.amctheatres.com/Cache/393015680.PDF?O=PDF&T=&Y=&D=&FID=393015680&iid=4171292

After analyzing these documents and conducting your own research, please answer the following questions:

• Should AMC acquire MoviePass?  Use the “Ownership Test” found in our reading on corporate strategy to structure your response.
• If no, then how should AMC compete with MoviePass? Please be sure to include concepts from our reading on Competitive Dynamics when building your argument.
• If yes, what aspects of the value chain can be developed to enhance value creation for AMC?

As with all case analyses, be sure to integrate your answers into the case analysis template I’ve provided at the beginning of the semester. 

Please limit your submission to 8 pages maximum.