Podcast Summary

Podcast: The Town with Matthew Belloni

Episode: How To Save Movies With the CEO of AMC Theaters
Date: September 1, 2025
Host: Matthew Belloni
Guests: Adam Aron (CEO, AMC Theatres), Lucas Shaw (Bloomberg)
Venue: Recorded live at the El Rey Theater

Episode Overview

In this lively, candid, and at times humorous live episode, Matthew Belloni welcomes Adam Aron, the outspoken CEO and Chairman of AMC Theatres, for an in-depth discussion about the state of moviegoing, the struggles and innovations of the theatrical exhibition business, and the critical question: How can movie theaters survive and thrive in today’s entertainment landscape? Joined by Lucas Shaw of Bloomberg, the conversation covers current industry tensions, the unique economics and challenges of theaters post-Covid, relationships with studios and streamers, pricing experiments, audience experiences, and what the future holds for multiplexes.

Key Discussion Points & Insights

I. The Business of Movie Theaters: Capacity and Usage

[05:08–06:23]

• Movie theaters are only about 14% full most of the time, akin to "a church built for Easter Sunday." Aron notes:

  “We’re sort of full on Friday and Saturday nights and pretty empty the rest of the time. … We do need more movies coming out… We also have to look for alternate uses of our space… we have so much excess capacity.” (Adam Aron, 05:18)

• Seeking new ways to use empty theater space is a priority.

II. The Theatrical-Streaming Divide and the Netflix Standoff

[06:35–12:02]

• AMC’s refusal to show some Netflix films is rooted in the lack of a theatrical window, not personal animosity:

  “Nothing would make me happier than for Netflix to want to show movies theatrically. … The most successful movies on streaming services are those which have had a robust theatrical release.” (Adam Aron, 07:18)

• Success stories—like Apple’s F1 and Glass Onion—show studios and some streamers are coming around to the value of a real theatrical run.
• Aron laments the failure to agree with Netflix on The Irishman’s window (09:47–11:13), and believes eventually talent and filmmakers will drive Netflix toward theatrical windows.

III. The Window Debate: Has Theatrical Lost? Or Won?

[13:37–15:39]

• The box office is down since Covid but “when Hollywood makes a movie that has real appeal, consumers pour out in droves.”
• Pre-Covid domestic box office “was over $10 billion for 11 years… over $11 billion for five years. … This year [2025] will be over $9 billion, but not $10 or $11.”
• Despite lower attendance, some films and events (e.g. Taylor Swift’s Eras Tour, 15:37) pack theaters.

IV. Margins, Concessions, and the Power of Popcorn

[15:51–18:52]

• The real profit is in concessions:

  “Pre Covid, we sold $5 a head of food and drink … We came back from COVID, it was over $8 a head, like instantly.” (Adam Aron, 16:20)

• Popcorn quality and sourcing:

  “I actually once went to a cornfield in Illinois… and I inspected the corn…” (Adam Aron, 17:18)

• AMC’s profit per patron is up nearly 50% since before Covid (36:24–37:41).

V. Audience Experience at AMC vs. Competitors

[18:52–21:19]

• Aron claims AMC offers a genuinely superior experience thanks to more premium screens (IMAX, Dolby), innovative subscription (A-List), and efforts to win brand loyalty.
• He relates the origin of A-List, attributing the subscription model not to MoviePass but his own experience in the ski industry:

  “MoviePass did come along and it was a nightmare for us … but we were planning to launch at a $20 price point…” (Adam Aron, 22:32)

• Now, A-List has grown to over a million members (29:22–29:57).

VI. The Advertising Dilemma: Why More Pre-show Ads?

[23:36–30:25]

• AMC resisted pre-show commercials for years, but competitors’ advertising revenue left AMC at a disadvantage during post-Covid recovery:

  “I hate this idea… But at some point, it’s irresponsible not to take the money if the consumer is telling us… [it] wasn’t being rewarded with incremental market share…” (Adam Aron, 24:08–25:45)

• Lengthened pre-shows by six minutes and now rolling back by about five minutes due to consumer feedback.
• Internal marketing (e.g., ads for A-List) shown because “they work”—A-List membership growth is evidence.

VII. Studio Relations and Disney/Marvel Weakness

[32:01–35:38]

• Disney is a vital partner—Aron praises Disney’s track record and denies requests for huge opening splits.
• Concerns about waning Marvel performance:

  “Would I love it if Disney is even more successful...? Yeah, I would.” (Adam Aron, 34:02)

VIII. The Evolution of Attendance, Pricing, and Margins

[36:24–38:24]

• Rise in per-patron profit due to concessions and new revenue streams—now includes bars and movie-themed merchandise:

  “We have 350 bars… right now we’re pushing around $100 million a year of movie themed merchandise in our theaters from nothing three years ago.” (Adam Aron, 37:43–38:08)

IX. Dynamic and Discount Pricing Experiments

[38:24–46:14]

• Added “Discount Wednesdays” after success with Discount Tuesdays, inspired by Sony chief Tom Rothman's critique of high ticket prices.
• Studios still get their share—AMC absorbs the revenue cut.
• Variable pricing (for weekends, blockbuster titles, end-of-run movies, seat locations) mostly tested with mixed-to-poor results:

  “…Whatever we made from the 80% who paid a little more was dwarfed by the 10% who deserted us to our competition. So we had to abandon that effort.” (Adam Aron, 44:33–44:44)

• Sightline seating (differentiated seat pricing) was unsuccessful due to customer pushback.

X. Streamers, Windows, and the Future with Apple and Amazon

[46:14–51:27]

• Stronger relationship with Apple after F1’s box office success—hopes for more robust windows but no public commitments yet.
• Studios generally no longer adhere strictly to a 45-day (let alone 74-day) window; Disney is the only major still consistent with a 60-day window.

XI. Preserving Moviegoing for the Future

[51:27–55:27]

• The theatrical experience is positioned as a cultural cornerstone worth protecting for future generations:

  “…preserving for your kids and their kids the chance to see movies in a movie theater 20 years from now and 50 years from now, that’s a good thing.” (Adam Aron, 53:35)

XII. Alternate Programming/Innovation for Theaters

[56:07–59:43]

• Aron agrees that theaters should seek alternative programming; AMC has tried NFL games (wrong out-of-market games), and is seeking rights to live sports and concerts.
• Capable of live broadcasting to 277 U.S. theaters.
• Teases a “really amazing idea” in the works for 2026.

Notable Quotes & Memorable Moments

• On theater capacity:

  “I describe the movie theater industry as a church built for Easter Sunday.”
  — Adam Aron, [05:17]

• On Netflix standoff:

  “We need a respectable theatrical window. Because if I do something for Netflix … how do I say to Disney … oh, yeah, but for you it's 45 days? It's just not right.”
  — Adam Aron, [11:09]

• On the core business:

  “Our profit margin on food and drink is really high … we buy the best corn there is.”
  — Adam Aron, [16:20–17:24]

• On AMC’s pre-show ads:

  “I hate this idea. … But at some point, it’s irresponsible not to take the money.”
  — Adam Aron, [24:08]

• On pricing experiments:

  “We tried blockbuster pricing, we tried charging a couple bucks more for a big movie title than a small movie title … but whatever we made from the 80% who paid a little more was dwarfed by the 10% who deserted us to our competition.”
  — Adam Aron, [44:33–44:44]

• On protecting the moviegoing experience:

  “Preserving for your kids and their kids the chance to see movies in a movie theater … that’s a good thing.”
  — Adam Aron, [53:35]

• On Nicole Kidman ad phenomenon:

  “There are bumper stickers and T shirts with phrases from the Nicole Kidman commercials all over America.”
  — Adam Aron, [52:26]

• On alternate uses for theaters:

  “We’ve been trying for years, mostly unsuccessfully [to get sports rights] … But watching a football game on a 55 foot screen is pretty good.”
  — Adam Aron, [56:36–58:26]

Major Segments with Timestamps

| Timestamp | Segment | |---------------|-----------------------------------------------------| | 05:08 | Movie theaters' low occupancy, need for new uses | | 06:35–12:02 | Netflix standoff, importance of windowing | | 13:37–15:39 | State of box office: winning/losing “the war” | | 15:51–18:52 | Concessions, popcorn profit, food quality | | 18:52–21:19 | Customer experience, A-List origin | | 23:36–30:25 | Rise and rollback of pre-show advertising | | 32:01–35:38 | Studio relations: Disney and Marvel | | 36:24–38:24 | Growing per-patron profit via upsells | | 38:24–46:14 | Discount pricing, variable pricing, seat pricing | | 46:14–51:27 | Streamers and window commitments | | 51:27–55:27 | Preserving moviegoing for future generations | | 56:07–59:43 | Alternative programming (sports, concerts, etc.) |

Tone and Language

The episode is light, fast-moving, filled with friendly banter and wisecracks—Belloni and Shaw needle Aron on ads, pricing, and AMC’s relationship with both fans and competitors, while Aron alternates between good-natured defensiveness, industry insight, and optimism about the future of cinema. Audience participation and on-the-spot reactions from the live crowd add energy throughout.

Summary Takeaways

• The survival of theaters hinges on more compelling movies, strong theatrical windows, and smarter use of assets.
• AMC will continue to experiment with pricing, concessions, and programming—balancing profitability with consumer satisfaction.
• Studio relationships (especially with Disney) are central, but the next frontier is securing buy-in from streamers.
• Future growth may depend as much on diversification (sports, concerts, events) as on movies themselves.
• Despite ongoing challenges, Aron remains optimistic:

  “I’m an optimist about the future of the box office.” (35:38)

This episode offers a masterclass in the challenges and hopes of movie exhibition in an era of streaming and shifting consumer habits—plus loads of insider stories and plenty of popcorn banter.