Of all great movie stories, there’s something special about comebacks. Think “Rocky,” “The Shawshank Redemption,” and “The Natural.” A much maligned or doubted hero rises up and triumphs against all adversity. I get goosebumps every time.
This comeback story rings true for those in the movie theater industry and the millions of movie fans who love to see dazzling images on theaters’ giant silver screens. Six years ago, the long and sometimes brutal coronavirus pandemic delivered what many expected to be a fatal blow to the theatrical distribution business. Conventional wisdom was cynical that audiences might never return, especially after the 2020 pandemic and two prolonged industry-wide strikes in 2023 in a short space of time. As a result of both, the movie release calendar was severely decimated and several years of blockbusters.
Being a theater manager is tough.
AMC Theaters in the United States and Odeon Cinemas in Europe are together the world’s largest movie theater operators. We never believed that watching movies in theaters was an anachronistic relic of a bygone era. Despite the obvious and painful stagnation at the box office, there was never any doubt in our confidence in our future and our determination to overcome the crisis. As our friend and champion Nicole Kidman tells everyone, “We’re here for the magic.” Above all, at AMC we know that Magic will never go out of style.
However, a comeback requires hard work. AMC has played a role in increasing our efficiency, finding new revenue streams, and investing more than $1 billion to maintain and enhance our theater fleet since 2020. The reinvestment in our world includes more upscale screens, brighter laser projection, more comfortable and spacious seating, an increased commitment to impressive sound systems, and more ambitious food and beverage offerings that AMC will offer guests.
But the world’s most comfortable recliner would be worthless if there weren’t some great and worthwhile movies showing on the giant screen. Then, in 2026, the real revival will begin. Universal and Illumination light up the screen with “Super Mario.” Lionsgate put the genius and eccentricity of “Michael” on display for all to see. Disney’s 20th Century label brings to mind the popular story of The Devil Wears Prada. Backrooms, directed by the 20-year-old filmmaker, became A24’s highest-grossing film in history. Project Hail Mary, Amazon’s biggest project since its acquisition of MGM, quickly established itself as a global phenomenon. As I write this, I am currently watching Christopher Nolan’s
The Odyssey, a blockbuster based on a 2,700-year-old poem, is vying for $1 billion worldwide. And perhaps the biggest movie of the year so far, Sony’s Spider-Man: Brand New Day is set to captivate and delight huge audiences.
Fortunately, this story of resurrection is being proven before our eyes. In the second quarter of 2026, AMC Entertainment just reported its highest-ever revenue and highest-ever adjusted EBITDA in the company’s 106-year history. Again, for fans hoping for a comeback, this was AMC’s most successful quarter ever.
Looking ahead, there are new milestones that suggest better times are just around the corner for movie lovers. The proposed merger of Paramount and Warner Bros. Discovery is poised to create a powerful combined company with the scale and passion to bring even more movies like it to theater screens around the world. While some may be concerned about this, our strong view is that this is a step forward that should be welcomed and celebrated. Perhaps that’s why Paramount’s actions to strengthen itself have already been cleared by competition authorities and regulators around the world in the United States, Europe, and, as of this writing, about 65 countries.
Already worldwide.
Completing this transaction as soon as possible is critical to the future of our industry. That way, after six tough years, we can all finally build on the momentum that was recently established. But for that to happen, it will have to overcome a legal challenge from a group of presumably well-meaning state attorneys general.
The domestic box office had its strongest quarter in seven years, posting a satisfying 11% year-over-year growth. In fact, the movie theater was packed with people of all ages. Perhaps most encouraging is who is leading the way. Approximately 87% of Gen Zers have seen a movie in theaters in the past year, the highest percentage of any generation. As it turns out, the young people who should have been lost to TikTok forever are now turning moviegoing at the theater into a social event instead. History repeats itself. They are doing exactly what their parents, grandparents, and great-grandparents have been doing continuously for over a century.
But this resurgence can only continue if there is a steady supply of good films, well marketed, and given enough time in theaters to become cultural events. That’s not a given, and just because we had a few strong quarters along the way doesn’t mean it’s going to happen. Our unfortunately accurate estimates show that major Hollywood studios have released fewer movies theatrically in recent years, since the coronavirus and the strikes. Simply put, movie theater operators needed to bring more movies into their ecosystem.
Just as important as the number of films themselves is the length of time a film is exclusive to theaters. Since the coronavirus outbreak, studios have been rushing to bring movies home. Ironically, Hollywood has trained audiences to stay patient at home rather than go to theaters, a move that some of filmmaking’s most important legends have denounced and lamented as self-defeating. In doing so, they deprived us all of a valuable co-viewing opportunity. As always,
It seems like an eternity, but when you watch a movie with other people, the laughs get louder, the action gets more intense, and the tears flow faster. To quote the best one-sentence synopsis ever written by AMC: “In places like this, even heartbreak can feel good.” Taken together, this is why the future of the film production company is so important to us.
Traditional movie studios and independent filmmakers are no longer competing not only with each other, but also with large technology companies that can treat filmed entertainment as a single product line within a larger subscription, advertising, hardware, or e-commerce machine. These technology companies can and often do make great movies, and some are even more willing to support theatrical releases, something AMC values very highly and embraces. In fact, we’re going to sell more tickets in theaters than anyone else on the planet. But their commitment to theatrical release is only likely to sustain and even increase if they feel real competitive pressure from streaming platforms as well as movie companies pushing them to fight for cultural and commercial relevance at multiplexes.
Such intense competition will not occur if companies like Paramount and Warner Bros. Discovery are forced to struggle as lower-tier competitors, and in our view, that’s exactly what will happen if the two companies are prevented from merging.
The AG’s lawsuit argues, in part, that this merger needs to be blocked to protect companies like mine. Well, thank you, but no thanks. Their complaints simply set back the economics of our business.
AMC licenses movies one movie at a time, theater by theater. Each week we decide what to show, on how many screens, and for how long. We negotiate revenue splits and other terms with all major distributors. We are not naive about bargaining power and we do not give up bargaining power. Time and time again, AMC has chosen not to show films when it fails to negotiate film terms that are fair and reasonable to the filmmakers, their studio distributors, and ourselves as exhibitors. We have absolute confidence in our ability to stand up and protect commerce.
Something that interests me.
But that being said, a weaker position is a far greater threat to us than a strong studio. More movies means more ticket sales. The initiative of observing the window of a fine theater attracts more spectators to the theater. And a good, well-marketed movie is the icing on the cake. All of this creates more moviegoers, which in turn means more delicious popcorn is consumed and more energy is felt throughout the theater. In stark contrast, if a film is sparsely scheduled, seats will remain empty, even if a percentage of the box office revenue is negotiated between the parties.
party.
David Ellison and several executives on his team have publicly stated, and privately promised, that Paramount and Warner Bros., combined, will release at least 30 films per year theatrically, each with at least 45 days of premium video-on-demand and at least 90 days of subscription video-on-demand theatrical exclusivity. These are concrete, measurable efforts that address the two things movie theater owners need most: more movies and enough time to turn them into events. If the AG is really concerned about the future of theaters, they should focus on hosting new theaters.
Companies are responsible for fulfilling these promises. AMC certainly intends to do that.
The good news is you don’t have to just take David Ellison’s word for it. There is a real track record here. Paramount released only eight movies last year. After Ellison’s Skydance took the lead, the studio put itself on track to release 15 films this year in 2026, similarly increasing the number of films greenlit for future release. I might add that it’s not just old movies. David Ellison has already proven that he is a consummate movie executive, producing commercially satisfying films that entertain the entire world. “Top Gun: Maverick,” multiple films in the “Mission: Impossible” series, and “Air” are just some of his recent titles.
Additionally, Paramount has already made good on its promise to honor extended theatrical release windows. The company could have waited to create future bargaining chips with regulators, but to its eternal credit, the company didn’t play the game. Paramount already gives theater operators exactly what we need in this vital aspect, and they’ve done just that.
Competition should be measured not just by the number of logos on the studio gate, but by what actually reaches American screens and movie theater screens around the world. Movie theater audiences are telling us exactly what they want: more movies, movies exclusive to theaters, better movies. That is the basis of the early resurgence of the theater ecosystem. We all need to nurture it, not starve it.
Approving this deal with Paramount-Warner and allowing the combined company to begin the business of producing a vast array of great films is a huge step in the right direction. That’s exactly what AMC Entertainment, the largest movie theater chain on the planet, fully supports.
