AMC Looks to Tap into Facebook's Black User Base in New Deal

Guests walk into an AMC Entertainment Inc. movie theater in West Chester, Ohio, U.S., on Saturday, July 30, 2016. AMC Entertainment is scheduled to release earnings figures on August 1. Photographer: Luke Sharrett/Bloomberg

</div> </div> <p><span style="font-weight: 400;"><span class="tweet_quote"> <a href="https://twitter.com/intent/tweet?url=http%3A%2F%2Fwww.forbes.com%2Fsites%2Fkorihale%2F2018%2F07%2F25%2Famc-looks-to-tap-into-facebooks-black-user-base-in-new-deal%2F&amp;text=AMC%20wants%20to%20tap%20into%20Facebook%E2%80%99s%20largest%20user%20group%20to%20sell%20more%20movie%20tickets." target="_blank" data-ga-track="ExternalLink:https://twitter.com/intent/tweet?url=http%3A%2F%2Fwww.forbes.com%2Fsites%2Fkorihale%2F2018%2F07%2F25%2Famc-looks-to-tap-into-facebooks-black-user-base-in-new-deal%2F&amp;text=AMC%20wants%20to%20tap%20into%20Facebook%E2%80%99s%20largest%20user%20group%20to%20sell%20more%20movie%20tickets." rel="nofollow">AMC wants to tap into Facebook’s largest user group to sell more movie tickets.<span data-ga-track="ExternalLink:https://twitter.com/intent/tweet?url=http%3A%2F%2Fwww.forbes.com%2Fsites%2Fkorihale%2F2018%2F07%2F25%2Famc-looks-to-tap-into-facebooks-black-user-base-in-new-deal%2F&amp;text=AMC%20wants%20to%20tap%20into%20Facebook%E2%80%99s%20largest%20user%20group%20to%20sell%20more%20movie%20tickets."></span></a></span> The deal will allow users to purchase their tickets directly through the social media site. Due to the recent popularity of movies with black storylines or a black main lead, could this AMC-Facebook partnership help keep the movie chain afloat?</span></p> <p><b>The Breakdown You Need to Know</b></p> <p><span style="font-weight: 400;">AMC shares have taken a beating, down </span><span style="font-weight: 400;">20% in a year, </span><span style="font-weight: 400;">due to a lackluster summer in 2017 and they are in need of a new strategy. </span><a href="https://www.culturebanx.com/" target="_blank" data-ga-track="ExternalLink:https://www.culturebanx.com/" rel="nofollow"><span style="font-weight: 400;" data-ga-track="ExternalLink:https://www.culturebanx.com/">CultureBanx</span></a><span style="font-weight: 400;"> notes that with considerable disruption in the movie theater industry thanks to companies like MoviePass and the overall decline in attendance, creating a social media partnership could be the key to a turn around for the company. Especially because black people are the most prolific group of social media users and tend to lead the patterns and trends shaping the landscape. Pew research found 70% of black adults use Facebook far outpacing any other ethnic groups.</span></p> <p><span style="font-weight: 400;">The social media platform already has agreements with e-ticketing services Fandango and Atom Tickets. However, for Facebook this is the first time the company is directly partnering with a movie theater chain. AMC stated all payments through Facebook will be processed by AMC, Fandango or Atom Tickets. In the AMC- Facebook deal, users who purchase tickets via the platform will have their online ticketing fees waived.</span></p> <p> </p> <p><span style="font-weight: 400;">So for AMC the proof is already in the pudding with this new deal, if we look at Atom’s e-ticket sales for Black Panther they reported a company record. The movie chain wants to see similar success with its online sales. More than 150 AMC locations, nearly 23% of the chain’s U.S. locations, set new admissions revenue records for a single title on opening weekend for Black Panther, according to deadline. “We know people already use Facebook to find movies to see in theaters, and purchase tickets to them,” said Swapna Joshi, Facebook’s product manager for movie ticketing in a statement. </span></p> <p><span style="font-weight: 400;">During the latest quarter, ticket revenues at AMC were up seven percent to $875 million, a number it wants to increase during the second half of the year. AMC which is owned by China’s Dalian Wanda Group shares have risen 10.1% this year, while Facebook shares have gained 17.9%. Currently AMC operates 660 theater across the U.S. and &nbsp;is also the world’s largest movie exhibitor.</span></p>

<p><b>Movie Ticket Mindfulness</b></p> <p><span style="font-weight: 400;">Large format movie chain Imax is also having a record setting year due in part to Black Panther. The company made more than, $40M from the film. It will be interesting to see if AMC competitors Imax and Cinemark attempt to cut a similar deal with Facebook in efforts to boosts their e-ticket sales.</span></p>” readability=”52.2968803565″>

Guests walk into an AMC Entertainment Inc. movie theater in West Chester, Ohio, U.S., on Saturday, July 30, 2016. AMC Entertainment is scheduled to release earnings figures on August 1. Photographer: Luke Sharrett/Bloomberg

AMC wants to tap into Facebook’s largest user group to sell more movie tickets. The deal will allow users to purchase their tickets directly through the social media site. Due to the recent popularity of movies with black storylines or a black main lead, could this AMC-Facebook partnership help keep the movie chain afloat?

The Breakdown You Need to Know

AMC shares have taken a beating, down 20% in a year, due to a lackluster summer in 2017 and they are in need of a new strategy. CultureBanx notes that with considerable disruption in the movie theater industry thanks to companies like MoviePass and the overall decline in attendance, creating a social media partnership could be the key to a turn around for the company. Especially because black people are the most prolific group of social media users and tend to lead the patterns and trends shaping the landscape. Pew research found 70% of black adults use Facebook far outpacing any other ethnic groups.

The social media platform already has agreements with e-ticketing services Fandango and Atom Tickets. However, for Facebook this is the first time the company is directly partnering with a movie theater chain. AMC stated all payments through Facebook will be processed by AMC, Fandango or Atom Tickets. In the AMC- Facebook deal, users who purchase tickets via the platform will have their online ticketing fees waived.

So for AMC the proof is already in the pudding with this new deal, if we look at Atom’s e-ticket sales for Black Panther they reported a company record. The movie chain wants to see similar success with its online sales. More than 150 AMC locations, nearly 23% of the chain’s U.S. locations, set new admissions revenue records for a single title on opening weekend for Black Panther, according to deadline. “We know people already use Facebook to find movies to see in theaters, and purchase tickets to them,” said Swapna Joshi, Facebook’s product manager for movie ticketing in a statement.

During the latest quarter, ticket revenues at AMC were up seven percent to $875 million, a number it wants to increase during the second half of the year. AMC which is owned by China’s Dalian Wanda Group shares have risen 10.1% this year, while Facebook shares have gained 17.9%. Currently AMC operates 660 theater across the U.S. and  is also the world’s largest movie exhibitor.

Movie Ticket Mindfulness

Large format movie chain Imax is also having a record setting year due in part to Black Panther. The company made more than, $40M from the film. It will be interesting to see if AMC competitors Imax and Cinemark attempt to cut a similar deal with Facebook in efforts to boosts their e-ticket sales.

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