AMC Entertainment, the world’s largest movie theater chain, is making a significant investment in premium large-format screens (PLFs) in anticipation of a surge in blockbuster releases. This strategic move comes as Hollywood studios gear up for a packed slate of highly anticipated films from major franchises like Avatar, Star Wars, Jurassic Park, Marvel, DC, and Mission Impossible, set to hit theaters in 2025 and 2026.
The company announced plans to add 40 new Dolby Cinema locations across its US theaters by the end of 2027, representing a 25% increase in its Dolby Cinema offerings. This follows a recent partnership with CJ 4DPLEX to introduce 65 ScreenX auditoriums and 40 4DX theaters globally. These premium experiences, with their enhanced sound systems, larger screens, and immersive special effects (like moving seats and environmental effects in 4DX), command higher ticket prices, offering a significant revenue boost.
The investment in PLFs is a calculated response to audience demand. Moviegoers are increasingly seeking out these enhanced viewing experiences for major releases, particularly action-packed and visually stunning films. The success of films like “Oppenheimer,” “Avatar: The Way of Water,” and the “Dune” franchise in PLF theaters demonstrates this trend. Data from Comscore reveals a substantial growth in North American theaters with PLF screens – a 33.7% increase in the past five years, now accounting for 9.1% of the domestic box office.
AMC’s CEO, Adam Aron, emphasized the company’s commitment to providing premium experiences sought after by filmmakers, studios, and moviegoers alike. The average price for a premium ticket is nearing $17, an 8% rise since 2021, according to EntTelligence. While PLFs still represent a small fraction of the overall box office, their rapid growth (33% in five years) signals a promising future for this sector. AMC’s aggressive expansion suggests a belief that this trend will only continue to grow alongside the upcoming wave of blockbuster movies.
This bold strategy by AMC demonstrates a clear understanding of the evolving movie-going landscape. By investing heavily in premium formats, AMC aims to capture a larger share of the box office revenue generated by the highly anticipated blockbuster releases on the horizon. Only time will tell if this gamble pays off, but the company’s confidence in the future of premium moviegoing is undeniable.
