AMC Entertainment Holdings, Inc. just made a bold move to capture a huge new audience:
The value proposition here is obvious: why pay $70 when you can pay $25? But the implications for AMC are even bigger than they may appear.
UFC is growing at an incredible rate, dwarfing growth in any other major sport. 2020 was a banner year for the league:
“For us personally, it’s the best year we’ve ever had. Crazy to say that, but we broke just about every record we have, except for live gate, obviously,” White told TSN. “It was a very challenging year for us, to pull all this stuff off. It was without a doubt the hardest year of my career.
Viewers grew 30% on ESPN and the UFC’s YouTube and Instagram accounts are second only to the NBA in followers.
UFC not only brings an enormous new audience to AMC, it counters one of the biggest problems movie theaters have: strong seasonality in their business. The most anticipated movies are usually released in the summer, and the crowds swell. But in the colder months, major releases are fewer and attendance drops off.
Unlike the movie business or most professional sports, UFC is not seasonal. Major tournaments happen regularly throughout the year, and there is no off season.
Picture normally empty theaters packed with cheering fight fans in January, and then imagine the money printing machine in AMC’s headquarters spitting out hundreds. While the stock’s price is a little high for my taste at the moment, I have to applaud CEO Adam Aron’s leadership.
More on AMC:
Photo: “File:Chuck Liddell vs. Rich Franklin UFC 115.jpg” by Bad intentionz is licensed under CC BY 3.0
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