Part of the deal with Cinemex was AMC Europe, which operates 20 screens in Germany. That agreement is anchored in AMC Europe’s 20+ years experience operating some of the largest screens in Europe, including the famed IMAX screens at London’s Odeon West End and IMAX Theatre Munich. In March 2017, AMC Europe was named Best US Movie Theater by Movies & Theater Magazine in the UK and Ireland.
Further market expansion and upgrades
In the United States, AMC’s network includes the largest theater chain in the world with a combined circuit of 629 theatres, nearly 800 screens and 120 million admissions in 2016, according to AMC. Additionally, AMC operates 22 theatres in Italy, 18 in the United Kingdom, two in Poland, eight in Spain, one in Greece, three in Switzerland, two in Austria, one in Turkey, three in Australia and one in Belgium.
Several European countries are next on AMC’s growth plan. After entering Germany earlier this year, AMC is expanding further in Europe. The company announced last month it will expand the number of theatres operated by its European network from four to 23 by 2021.
New countries, new markets
Further expansion will begin with Greece, Belgium and Turkey, with further new markets to be added in Belgium, France, Italy, Austria, Spain, Switzerland and Germany.
Going global with $9.4 billion
Since taking control of AMC in 2012, its value has been a significant investor in the movie industry. In 2014, AMC broke up its AMC Entertainment Holdings business and announced its plan to sell five European theatres to the American cinema company, according to the Financial Times.
There are three main elements to AMC’s growth. First, AMC Entertainment Holdings was incorporated as a spinoff of AMC Entertainment Holdings, Inc. The new AMC Holdings was created in December 2014, with investments from the majority shareholders of AMC Entertainment Holdings, including the Blackstone Group and Apollo Global Management.
This new company acquired numerous assets, such as the Odeon & UCI Cinemas Group, European cinema company. In May 2016, AMC renamed AMC Entertainment Holdings as AMC Entertainment.
AMC Entertainment Holdings then announced the formation of AMC Entertainment Europe, which will operate 67 theatres in 13 countries in Europe. In March 2017, AMC Entertainment Europe completed its acquisition of the company, with further expansion to come.
A bigger, stronger AMC
Cinema International Group was incorporated as a fully integrated movie theatre operator in 2011, with an agreement with AMC to take over its German cinema operations.
However, the German market presented several hurdles. With many cinema operators having seen it as an outdated business in a modernized market.
The market for cinemas was disrupted by digital services such as Netflix. Which forced cinemas to rethink their business model. In February 2017, AMC acquired all of the outstanding shares of Cinema International Group for €450 million.
In the United Kingdom, AMC has been opening theatres, upgrading and remodeling others. Investing in new amenities and technologies, upgrading theaters and building new locations.
The company planned to spend more than $4.2 billion in the United Kingdom in the coming years. In October 2016, AMC opened its first theatre in Birmingham, England, bringing a new cinema to Germany.
As part of this deal, AMC will take over the existing cinema at Westfield Westfield Stratford City, London. The aim is to transform the shopping mall into Europe’s largest cinema. With almost 1,000 screens across 32 screens and 37,000 seats.
A global AMC
With the purchase of Odeon & UCI Cinemas Group, the American company is now expanding globally, with its global reach approaching 30,000 screens.
AMC is not the first company to acquire European cinema companies. In February, fellow US cinema giant Cinemark, opened its first cinema in Germany in Stuttgart.
Germany is AMC’s second most important market, with more than 190 theatres, and almost 160 million admissions last year. The company plans to spend approximately $65 million on the refurbishment of these existing cinemas.
Staring 2018, AMC will also take over the operations of 14 existing Odeon & UCI cinemas and 18 of the AMC and Odeon & UCI theatres in the United Kingdom. These changes will expand AMC’s presence in the region, to represent about one-third of the UK’s total cinema market.
The number of cinemas in Germany is expected to double. With more than 400 screens.
“Our acquisition of Odeon & UCI ensures AMC has sufficient strength and scale in European cinema to capitalize on the large and growing demand for premium cinema at affordable prices by addressing a gap in the market,” CEO Adam Aron said in a statement.
This investment in Germany will also include the opening of 20 new cinemas. Doubling the number of screens in the country.
A global expansion for the amc german market
In 2015, AMC opened its first cinema in Moscow, Russia, and plans to open four cinemas in Russia by 2021. The company is also planning to expand in Germany, to reach around 1,600 screens in total.
Alongside a total of 30 theatres in the United Kingdom and the United States. The company is also opening up in Italy. The Middle East, South Korea and China.
amc german market bought Odeon Cinemas Group for $2.23 billion and changed its name to AMC Entertainment Europe. Following the acquisition, the company said that it had more than 1,300 screens across 21 countries and 2,400 screens worldwide.
With the new markets, amc german market is aiming to double its share in the global cinema market to 24.5%. While the global cinema market is expected to grow from $35 billion in 2015 to more than $70 billion in 2020. According to market analysis by Technavio.
A new US and European challenger
Alongside amc german market, European cinema operators are also pushing into the global market. Odeon & UCI Cinemas Group’s biggest competitor in Europe is the British group Cineworld, which is owned by the global Cineworld Group.
Following the acquisition of Odeon & UCI, Cineworld will be able to sell tickets in more than 25 countries, including the United States. The company plans to invest more than $1 billion to improve the shopping centres across its network and create more than 10,000 new jobs in the coming years. for more information.