Entertainment
Theater Chains Face Uncertainty With Few Must-See Films in 2020

(Bloomberg) –Movie-theater stocks are facing a rough outlook for the new year, as a weak slate of films looks to extend the tepid U.S. box office seen over 2019, analysts said on Monday.
MKM Partners wrote that it was “taking a cautious outlook for 2020,” anticipating that domestic box office revenue would fall 4% in 2020. That’s on top of a year-over-year drop in 2019.
Referring to 2020, MKM analyst Eric Handler wrote that “the biggest issue for the year is it is lacking the mega-hits seen last year,” when four titles — “Avengers: Endgame,” “The Lion King,” “Toy Story 4,” and “Frozen 2” — all made more than $400 million.
“Looking at the current slate for 2020 we are having a tough time assessing if any film” can breach that level, he added.
Among the films scheduled for release in 2020 are “No Time to Die,” the latest entry in the James Bond franchise, along with “Mulan,” “Black Widow,” and “Wonder Woman 1984.”
The ongoing growth of streaming video — notably with the recent success of Walt Disney Co.’s service — is seen as adding to the cautious environment for theater chains like AMC Entertainment Holdings and Cinemark Holdings.
Given the proliferation of streaming services and the improved quality of streaming content, “consumers are becoming increasingly selective as to what movies warrant a trip to the movie theater,” wrote Richard Greenfield, an analyst at Lightshed Partners. “As consumers grow more selective, it puts increased pressure on the top 10 films of the year” to support overall box-office revenue. Looking at the 2020 calendar for film releases, “we simply do not see the excitement.”
He added that “it does not appear hard” to envision domestic box office dropping by double digits in 2020, “falling back to levels last seen in the early 2010s.”
Shares of AMC fell 2.2% on Monday and touched record lows. Last month, BofA downgraded the stock on the 2020 film schedule, as well as “a cont. rise in perceived competition from small screen competitors” like Netflix. Cinemark shares rose 0.2% on Monday, as did Imax Corp.
-
Automotive2 months ago
South Korea Plans to Support Auto Sector with US$2B Following US Tariffs
-
News2 months ago
Oman Oil Prices Witness Drop Amid Shifting Global Trade Dynamics
-
OER Magazines1 month ago
OER, April 25
-
News2 months ago
Aligning HR Strategies with Oman Vision 2040: A Roadmap for Organisational Growth – OER Business Summit 2025
-
Renewables2 weeks ago
Jindal Renewables and OQ Alternative Energy Sign Joint Development Agreement to Advance Integrated Renewable Power Projects in Oman
-
Alamaliktistaad Magazines1 month ago
Al-Iktisaad, April 25
-
Banking & Finance2 months ago
Bank Nizwa Signs MoU with Ministry of Endowments and Religious Affairs to Enhance Endowment Management & Islamic Finance Frameworks
-
Banking & Finance2 months ago
Sohar International Bank SAOG Announces Intention to Merge with Ahli Bank SAOG