As we have recently seen in that past few weeks, there has been a wide shut down on businesses accross the United States due to COVID-19. While dates are not clear for when businesses will open up, the theatre business has seen a large decline due to closures. According to WSJ, AMC, Cinemark and Cineworld have seen a drop of 76% on their shares. There has also been speculation on default on debt due to acquisitions made prior to the pandemic.
With extension on shutdowns and uncertainty with the pandemic, Hollywood studios have pushed release dates on movies that were schedule to release in the spring to the fall or winter. Walt Disney recently announced post-poning "Mulan" and "Black Widow" but has yet to set future dates. With this in mind, the opening of theatres in the summer is faced with problems due to releases being pushed to the fall and winter. Overall, the problem to theatre chain is the when they will be opening up. The longer, the more problems they face with their balance sheets.
I think this is a great topic to discuss in the field of marketing. While times are definitely rough for all businesses, how do you recover from an uncertain pandemic becomes the question. I think it is extremely hard for there to be a marketing strategy when there is uncertainty of theatre chains opening.
https://www.wsj.com/articles/not-playing-at-a-theater-near-you-11586008814?mod=searchresults&page=1&pos=10
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