Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
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44 S C T / A P R I L 2 0 1 7 Odeon & UCI Cinemas in Europe, AMC is now the largest theater chain in the United States, Europe and the world. And we're in the process of another global transaction of Stock- holm-based Nordic Cinema Group. You came to AMC with a background in the hotel business, travel and tourism, and professional sports. You are still a co- owner of the Philadelphia 76ers. How have you applied les- sons learned in other industries to the theater business? I think the most important lesson I've learned is that there's nothing more important to a company's success than having a good product. And with recliners, premium experiences like Dolby at AMC and Imax at AMC, expanded food-and-bever- age options and MacGuffins bars, we at AMC have a very good product for moviegoers. There is a major shift taking place in your industry. Business models for theater chains have long been built around quan- tity of theaters, screens and seats. But your firm believes that the quality of the moviegoing experience has become the key to long-term success. Why has quality become more import- ant than quantity? For the last four to six years, AMC has led the theater industry into a period of rapid change. When others were telling AMC not to go forward with our full theater remodels, AMC was moving full steam ahead. The results, financially and in terms of guest response, were so compelling that the rest of the in- dustry has had no choice but to follow in our footsteps. What does this shift from quantity to quality mean for the future of the theater business? Will the size and composi- tion of the business change over time? If so, how? Movie exhibition is undergoing an amazing reinvention. The industry has experienced more advances in the last five years than it saw in the previous two decades. This includes an ex- plosion of recliner seating, reserved seating, advances in sight- and-sound technology, more food-and-drink options, bet- ter rewards programs and an expanding availability of movie product. What I think we'll see over the next few years is a con- tinued focus on innovation that will make theaters extraordi- narily more comfortable and even luxurious. This, in turn, will be the guarantee that guests will continue to see movies on the big screens offered at theaters. One of the central features of your theater renovations has been to replace traditional seats with wider, plush recliners. The change typically results in an auditorium's losing up to two-thirds of its seating capacity. Yet attendance has risen a healthy 75 percent, on average, at these locations, according to your annual report. To what do you attribute this inter- esting dynamic? I attribute it to moviegoers really liking the amenities that AMC is providing. When you can sit in a plush power recliner, select from an innovative menu, pick from one of more than 100 flavor choices at a Coke Freestyle [touch-screen soda fountain], or grab a beer, glass of wine or cocktail and watch your movie in a premium format like Imax or Dolby Cinema, it makes the experience memorable and draws you back in. You're more likely to talk about it to your friends and neighbors, getting them in as well. Like theaters, many shopping centers are reinventing themselves. Many are upping their game when it comes to food and entertainment. To what extent do shopping cen- "MOVIE EXHIBITION IS UNDERGOING AN AMAZING RE-INVENTION. THE INDUSTRY HAS EXPERIENCED MORE ADVANCES IN THE LAST FIVE YEARS THAN IT SAW IN THE PREVIOUS TWO DECADES"