Dark days inside the cinema business

Can Hollywood survive without theaters?

A movie theater.
(Image credit: Ezra Shaw/Getty Images)

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Movie theaters will need more than popcorn to persuade audiences to catch the latest blockbuster this summer, said Kelly Gilblom and Angelina Rascouet at Bloomberg. Cinemas are among the last businesses to reopen in the United States and Europe, and with good reason: Plenty of customers remain skeptical that it's "safe to sit in a room with strangers for two hours during a pandemic." But the largest chains, AMC, Regal, and Cinemark, are forging ahead with plans to reopen nationwide by mid-July. It's already proving tricky. AMC, the world's largest theater operator, "drew outcry when it said it wouldn't require masks" because the company "did not want to be drawn into a political controversy." AMC later reversed its policy. It's still capping seating at 30 ­percent, which will make chopping down its $10 billion net debt difficult. Meanwhile, the threat from streaming services has only grown during the crisis. AMC threatened to sever ties with Universal Pictures after the studio bragged about the $100 million it took in with the direct-to–home video release of the new movie Trolls World Tour. "If the public decides that going to the movies is unsafe," studios can go straight to video again.

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