UPDATED with closing prices. The better-than-expected Christmas weekend opening of Wonder Woman 1984 gives most exhibit supplies a welcome boost as the misery of 2020 gives way to hope for a brighter 2021.
Shares in Cinemark, Imax, Marcus Corp. and National CineMedia rose between 3% and 7% after the sequel took in $ 16.7 million domestically, the best arc by any film during the coronavirus pandemic.
AMC, the world’s largest theater track, was a notable exception to the rally. The share fell by 5% due to the constant concern of investors about the liquidity and the possible filing of bankruptcy. At $ 2.38, AMC shares are at their lowest point since early November, although still higher than their $ 1.95 in 2020, which was established in mid-March when Covid-19 closed theaters across the Western Hemisphere has. Cineworld, parent of Regal Cinemas, achieved only a 1% increase on the London Stock Exchange.
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Shares in the relatively better-strengthened Cinemark, meanwhile, rose 3% to $ 16.98.
WarnerMedia has caused a huge setback in the industry by not just sending WW84 but its entire 2021 leads to the streaming service HBO Max, at the same time that it appears in theaters. The company reported a good look at HBO Max this past weekend, but did not release any new subscriber data. The economy of releasing large tent poles without the hundreds of millions of dollars generated by theaters is significantly more challenging than using theaters to promote other revenue opportunities.
Analysts Eric Wold and B Riley predict that Warner Bros. will reverse its streamlining plan, especially if exhibitors do not propose the revenue distribution through the studio, and the films eventually become little distributed. In a comment to clients, he calls the film a ‘loss leader’ designed to support HBO Max. The box office confirms Wold’s belief that ‘moviegoers want to become moviegoers’. Despite the fact that they could play in 23% fewer theaters than those of Warner Bros. Tenet in September, WW84 far surpasses the $ 9 million Christopher Nolan film debut. (Imax locations contributed 7% of gross domestic contributions and 10% on a global basis.)
Nearly half of all direct subscribers to HBO Max have streamed Wonder Woman continued, with an overall viewing time on the service running at the triple level of a non-holiday November period. However, Wold maintained: ‘The decision taken by HBO Max subscribers to watch’ WW84 ‘at home was more a decision that closed local theaters and made home restrictions for them, as opposed to the desired way of watching film. . forward. ”
With top markets like New York, LA and San Francisco and other major cities facing significant capacity constraints, Wold said WW84 opening equals an arc of $ 110 million to 120 million in a normal market. (The original film opened with $ 103 million in 2017.)
“We believe it helps support the thesis that when consumers are again allowed into theaters with attractive content, they will become moviegoers again, and that the industry has the potential to return to normal in 2022,” the analyst wrote.