AMC quarterly earnings boosted by Taylor Swift and Beyoncé concert films
LOS ANGELES — Taylor Swift and Beyoncé were the heroes in jumpsuits for AMC last year, helping the theater chain recover from the impact of COVID-19 by boosting its quarterly revenue significantly.
Both artists, coming from different music backgrounds, have made a mark on Hollywood by turning their attention to the film industry.
Their concert films, “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyoncé,” were instrumental in AMC’s fourth-quarter earnings growth by changing the distribution model and releasing the films directly through theaters, bypassing traditional studios.
AMC CEO Adam Aron credited the success of these films for the revenue increase and nearly tripling of adjusted EBITDA in the fourth quarter, making them responsible for all of AMC’s revenue and earnings growth for the period.
AMC stated that the films contributed significantly to ticket sales across the industry in the fourth quarter, capturing one-ninth of the total domestic box office revenue during that time.
“Eras” and “Renaissance” both set box-office records in their opening weekends, collectively earning over $115 million domestically.
Despite a drop in AMC Entertainment Holdings Inc. shares after the quarterly results release, the partnership between AMC and the two artists proved to be a lucrative new venture for the theater chain, with Swift and Beyoncé directly negotiating the production and distribution of their films with AMC, cutting out the traditional studio middleman and sharing profits accordingly.
Swift’s “Eras” concert film, filmed during her world tour stop in Inglewood and released in October, set box-office records and earned $180 million domestically. Beyoncé’s “Renaissance” also performed well, making $33.8 million domestically.
Both artists’ success in the film industry contributed to increased concert attendance and revenue for Live Nation Entertainment in 2023.
The success of these films and concert tours has also led to scrutiny over ticketing practices by companies like Live Nation and Ticketmaster, prompting investigations and legal action against them.