Why the AMC, Zoom partnership could boost the theater chain
Yahoo Finance's Brian Sozzi discusses AMC's new partnership with Zoom to offer "Zoom Rooms" in movie theaters.
Video Transcript
BRAD SMITH: All right, [? in ?] [? file ?] [? folder ?] we didn't see this one coming. AMC teaming up with Zoom to turn some of its movie theaters into massive video conferencing spaces for 75 to 150 people. AMC will even provide food and beverage offerings. This, of course, caught Sozzi's attention, and that's where we find his take today. Sozz, what's [INAUDIBLE]
BRIAN SOZZI: Hey, don't [INAUDIBLE] me. I saw it coming, Brad. I saw it coming because you hop on these AMC earnings calls and I think it's very clear. CEO Adam Aron a.k.a. chief ape, he wants to reinvent the movie theater experience. He wants to get more productivity from these theaters that are not necessarily being used for movies. But let's run through the details here because it was an interesting little partnership here that they tied up and announced late yesterday.
They are called Zoom Rooms. Catchy name right there. The meetings will be held on Zoom on AMC screens using their audio. So you hold your team meeting. You go into the theater, kick back, and listen to your top executive wax poetic on 30 initiatives they're trying to hit a home run on next year. And all that may play on the screen as well using that Zoom platform and interface.
Now, this is launching in 17 US markets sometime in 2023. I do imagine it will take a little bit of time to get the technology in there and get it right and test it to make sure it works when you're going there with 150 people from work and it works completely seamlessly. And I do think, now, is this going to move the needle for AMC's top and bottom lines? No, not necessarily.
But doesn't mean it's not good for the company overall. A couple of reasons why it is good, like I just mentioned, it drives-- it should help drive more productivity from those AMC screens, Brad. If the screens are not being used because people are not back in the theaters like they were before pandemic, at least there could be something that could drive productivity from places in that movie theater that are not being used.
Ultimately also it gets people back into the mindset of visiting a theater. Sure, AMC has had a recovery year this year on the back of really some good movies out there. Of course, "Top Gun Maverick." People have come back to the theaters. But not-- you don't sense that enthusiasm back at the levels it was let's say in 2016 when we were all able to go to the movies and there was no COVID. So it gets people back into the theater and thinking about it. And lastly here, my take is very simple. I would love to be doing one of these. I would love for it to try--
BRAD SMITH: [LAUGHS]
BRIAN SOZZI: Maybe that's-- wow, is that the debut with a Brad Smith icon?
BRAD SMITH: Oh my god.
BRIAN SOZZI: Oh my god, that is amazing. Oh, I'm so happy. Welcome, Brad.
BRAD SMITH: That's some promo.
BRIAN SOZZI: Welcome to the movie theater. But yes, that could be us right there listening to our executive producer Val Caval give a presentation about big things she's trying to do next year. I would sign up for all that. I would love to be eating popcorn listening to that presentation with you, Brad.
BRAD SMITH: Yes, I mean, clearly we're going to do that.
BRIAN SOZZI: I mean, we kind of look-- it kind of looks like it, right?
BRAD SMITH: It is.
BRIAN SOZZI: I mean, right there. I mean, that's just great. I mean, that's amazing. That's absolutely amazing.
BRAD SMITH: I mean, it's just a question about how much they're going to charge for this too.
BRIAN SOZZI: Yeah, yeah. It's got to be-- I mean, you're hitting the corporate card with this. I mean, 150 people? I mean, what, maybe $25, $30 a person. Maybe even more. I mean, if food and beverage is included, it's $100.
BRAD SMITH: Why would you be-- well, OK, I guess at that point why would you be paying a per person if you're really just licensing out the theater at that point?
BRIAN SOZZI: Mm-hmm, yeah.
BRAD SMITH: You should just be able to license it out, have the ability to operate it pay, for the operator. So just have the hour covered.
BRIAN SOZZI: Yeah.
BRAD SMITH: So it should be on an hourly basis.
BRIAN SOZZI: I'd love to see our team on the big screen. I mean, that'd be--
BRAD SMITH: That would be fun.
BRIAN SOZZI: That'd be really cool.
BRAD SMITH: That'd be fun. All right.
