Amazon is expected to buy AMC theatre chain. How much of an impact will it leave on marketers.

Published: April 03, 2023

min read

Amazon considers a takeover of movie theatre chain AMC. The shares of AMC Entertainment Holdings reportedly increased by more than 18 percent this week after sources claimed Amazon’s interest in purchasing the theatre chain.

The largest exhibitor in the world, AMC, owns close to 600 movie theatres across the Middle East, Europe, and North America.

It appears that Jeff Bezos, founder and CEO of Amazon, has dispatched his top financial advisers to investigate the possibility of buying the cinema chain.

The e-commerce powerhouse could set up "marketing weigh stations" with the help of AMC to advertise movies that it has produced.

After all, Bloomberg reported in November of last year that Amazon was considering spending $1 billion a year to bring its Prime movies to theatres.

It seems that the discussions are underway. It is still unknown if Amazon will make a bid to purchase the chain.

However, the industry experts see this as an unlikely acquisition target for Amazon.

For $200,000 per screen, or $200 million, Amazon could purchase 1,000 screens. Why would Amazon decide to spend $8 billion on 10,000 screens instead?

Wall Street Analyst

Amazon faced the same kind of criticism when it announced its acquisition of Whole Foods, the American multinational supermarket chain. But ultimately, Amazon proved them wrong with its success and concrete business strategy.

Nonetheless, it is also noted that AMC has been on a roller-coaster ride in the last two years. Shares of AMC fell by 85% in just 2022.

How can Amazon’s takeover of AMC benefit brands?

It is undeniable that OTT platforms are taking centre stage nowadays and theatre audiences are gradually declining. However, moviegoers desire for watching movies on the big screen can never be completely replaced.

It is apparent that the industry analysts see Amazon’s idea of buying AMC as an unexpected and downgrading move.

But, contrarily, we see a lot of positives and promising options behind Amazon’s purchase of the largest exhibitor in the world.

Though digital reliance grew among people during the pandemic, now people are starting to go back to in-store shopping. Thus, there is no doubt that phygital experience is evidently rising.

Hence, through Amazon’s move, we believe businesses can gain the following benefits:

Achieve an integrated and enhanced customer experience:

In this customer-centric world, it has become vital to provide an integrated customer experience. It makes the buying journey simple and easy for audiences.

If Amazon integrates its Prime membership features with theatrical experiences, it may offer huge benefits for both businesses and audiences.

For instance: With an Amazon Prime membership, if audiences can watch movies in theatres at a low cost or free of charge, then people may find it a huge bonanza, and it can turn out to be a potential selling point for Amazon.

Besides, if audiences get the option of receiving their deliveries while watching movies, it may provide more flexibility and convenience to them. It, in turn, can enhance overall customer experiences.

By leveraging the new united phygital experience provided by Amazon, brands will be able to provide a connected customer experience. In addition, they can reach new audiences and serve their existing customers in an innovative and convenient way.

Gain fresh data insights:

By integrating with theatres, Amazon is adding a fresh channel for brands to collect data from. It adds more value for businesses and paves the way to enriching omnichannel experience.

Be it promoting new products or offers, businesses can get additional customer insights on what is working among audiences. By analysing and comprehending the data, brands can tweak their marketing campaigns on other channels as well and improve conversions.

Overall, we anticipate that Amazon’s takeover of movie theatre chain AMC will pose many benefits to retail brands, helping them establish a connected experience for their customers.


Bill Walker

Bill is a marketing strategist who believes in the power of storytelling. He's known for his creativity, wit, and ability to connect with audiences across all channels. When he's not crafting marketing campaigns, you can find him hiking in the mountains or reading a good book.


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