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:
AMC ON THE THRESHOLD LIST: STRONG EVIDENCE OF NAKED SHORT SELLING
AMC’S S-3 WITHDRAWAL: WHAT DOES IT MEAN?
Photo: “File:Chuck Liddell vs. Rich Franklin UFC 115.jpg” by Bad intentionz is licensed under CC BY 3.0
If you found this post interesting, please share it on Twitter/Reddit/etc. using the buttons at the bottom of the page. This helps more people find the blog! And please leave your comments at the bottom.
Save Money on Stuff I Use:
This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 and returns have been good so far. More on Fundrise in this post.
If you decide to invest in Fundrise, you can use this link to get your management fees waived for 90 days. With their 1% management fee, this could save you $250 on a $100,000 account. I will also get a fee waiver for 90-365 days, depending on what type of account you open.
The only place I buy vitamins and supplements. I recently placed an order and received it in less than 48 hours with free shipping! I compared the prices and they were lower than Amazon. I also love how they test a lot of the vitamins so that you know you’re getting what the label says. This isn’t always the case with supplements.
Use this link to save 5%! I’ll also get 5% of however much you spend, at no cost to you.
My wife and I have gotten organic produce shipped to our house by Misfits for over a year. It’s never once disappointed me. Every fruit and vegetable is super fresh and packed with flavor. I thought radishes were cold, tasteless little lumps at salad bars until I tried theirs! They’re peppery, colorful and crunchy! I wrote a detailed review of Misfits here.
Use this link to sign up and you’ll save $10 on your first order. I’ll also get $10.