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Case
| HBS Case Collection
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September 2018
(Revised April 2019)
AMC Entertainment: Creating a Spectacular Moviegoing Experience (A)
by
Henry McGee and Aldo Sesia
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Abstract
In 2018, the Hollywood film industry is facing tough headwinds. Fewer and fewer Americans are going to movie theaters, opting instead to watch movies on demand in the comfort of their own homes or on portable devices. Adam Aron, the head of the world’s largest movie theater chain, AMC Entertainment, is employing an aggressive strategy to bolster the moviegoing experience by adding new amenities including plush reclining seats, reserved seating, and upscale food and beverage options. He is also placing a special emphasis on expansion overseas where the market is growing. Will his actions allow the company to successfully compete in a mature industry under assault by new digital competitors? With the growing popularity of entertainment subscription services like Netflix and Spotify, should AMC adopt a similar business model?
Keywords: exhibitors;
movies;
Film Entertainment;
Disruptive Innovation;
Consumer Behavior;
Competitive Strategy;
Expansion;
Global Range;
Business Model;
Motion Pictures and Video Industry;
