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AMC Entertainment is an American multinational media corporation based in New York City. It operates two businesses: AMC Networks Inc., which owns and operates AMC, IFC, SundanceTV, WE tv, and IFC Films; and AMC Studios, a film production subsidiary launched in 2016. AMC Networks’ other holdings include international channels such as BBC Worldwide, Canal+ Group, Scripps Network Interactive, and Nat Geo Partners. In this blog post, we will be looking at the steps taken by the company to ensure a safe comeback from the pandemic outbreak.
In March 2020, they announced that they would suspend their movie theaters indefinitely due to the coronavirus outbreak. The company had already closed down its theater locations in China and South Korea. In addition, AMC was also closing many of its theaters across North America. While most people were worried about going out for a date or catching up with friends, AMC Entertainment was concerned about keeping employees safe from contracting the virus. This was especially true because AMC has over 1,000 employees working at their headquarters.
As a result, the company’s stock price dropped by more than 50%. In April 2020, it was reported that AMC Entertainment planned on reopening around Memorial Day weekend. However, in May 2020, AMC Entertainment announced plans to close all of its theaters for good.
After the announcement, there were many questions about how they could survive this crisis and return to normal operations. Many people wondered if the company was trying to get rid of its theaters to focus on streaming services like Netflix. Others thought that AMC might be planning to sell off some of its assets.
However, CEO Adam Aron said that he didn’t think they needed to sell anything to stay afloat. He also stated that the board was not interested in selling any of its subsidiaries. Instead, Aron wanted the company to grow its business through new ventures.
So, how exactly did AMC Entertainment survive the pandemic? And what role did the CEO play in making that happen?
AMC CEO Adam Aron, who took over as CEO in 2016 after his predecessor, Robert A. Iger, retired. He was formerly the president of Disney Media Networks, and before that, he worked at NBCUniversal.
When they suspended their theaters, he made sure that they could keep their employees safe.
During the interview, he said, “We’re not shutting down our production facilities. We’re not shutting down our distribution network.”
“Our focus right now is making sure that we have enough food and supplies for our workforce,” he added. Aron also said that the company would continue to produce movies and television shows, but they will be released online.
He explained that “we’ll do everything we can to make sure that we don’t lose the talent that we’ve built up here at AMC.”
This includes having staff members work remotely and using technology to help them communicate with one another.
In addition, he wants to use the time to develop new projects.
“I want us to take advantage of this period where we’re not producing content to create new things that will drive growth going forward,” he said.
This means that AMC may launch more streaming services or even buy other companies.
There are 3 ways how AMC survived the pandemic:
1) They had enough money to keep operating through the pandemic.
AMC Entertainment had enough cash to keep operating through the Covid-19 pandemic. The company had $1.4 billion in cash on hand on March 31, 2020. This means that they would still have plenty of money even if they lost millions of dollars from ticket sales.
2) There was a contingency plan B.
3) The presence of a great team behind them.
The company had a strong team behind it. For example, AMC Entertainment had a contingency fund to pay employees if the company shuts down. Also, the company has a separate legal entity that operates independently. This way, if the firm closes its doors, the legal entity can continue operations.
AMC Entertainment planned to open more theaters in the United States once things returned to normal. Aron added that the company would be expanding into other markets, including Japan and India.