AMC earnings receive a boost from concert films featuring Taylor Swift and Beyoncé
Taylor Swift and Beyoncé were the heroes in jumpsuits for AMC last year, helping the theater chain recover from the impact of COVID-19 and driving a significant increase in quarterly revenue.
Despite coming from different music genres, the two superstars have made a mark in Hollywood by venturing into the film industry with their concert films – “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyoncé”. These films contributed to AMC’s earnings in the fourth quarter of 2023 by changing the distribution model and releasing them directly through the theaters.
AMC’s revenue and earnings saw significant growth, with CEO Adam Aron attributing all of the increase to the success of these two films shown in AMC theaters.
The films broke box-office records in their opening weekends, collectively earning over $115 million domestically. Despite a drop in AMC Entertainment Holdings Inc. shares, the earnings were still considered a win for the theater giant and the two artists who negotiated directly with AMC for distribution.
Taylor Swift’s “Eras” and Beyoncé’s “Renaissance” marked a new chapter in AMC’s 103-year history as they became the first movies distributed by the theater chain. The success of these films contributed to AMC’s continued recovery from the pandemic.
Swift’s “Eras” made history with its impressive box-office performance, while Beyoncé’s “Renaissance” also garnered success, earning $33.8 million domestically. Both artists negotiated directly with AMC and bypassed traditional Hollywood studios, resulting in a profitable partnership.
Overall, the success of these concert films reflected a positive trend in concert attendance, boosting revenue for Live Nation Entertainment. While the industry thrived, challenges arose with scrutiny on ticket vendors like Ticketmaster and Live Nation for alleged anticompetitive practices.
Despite these challenges, the success of Taylor Swift, Beyoncé, and AMC’s partnership in the film industry marked a significant milestone in the entertainment landscape.