The biggest chain of cinemas in the United States, AMC Theatres, is facing serious operational problems, having to shut down operations in some of its locations, fight a decreasing attendance rate, and alter its consumer habits as viewing trends change. Although it has a strong box-office release schedule in 2025, the company is having problems filling the seats and making money.
In the recent past, AMC has closed three theatres in Illinois, such as Pekin, Mattoon and Marion. Pekin had been doing business for over 25 years before it was shut down. The company explained these decisions through a regular review of theatres in a bid to strengthen the company. Although such closures have not been an isolated case, they demonstrate how the traditional cinemas are increasingly finding harsh conditions, especially in the smaller urban centers where patronage has drastically reduced.
AMC still maintains theatres in 37 cities in Illinois, even after the closures. The corporation is asking customers to go to other neighboring places; however, this action represents a bigger picture- the cinema attendance in the retail format is declining, and small theatres are suffering.
The 3-quarter 2025 earnings report of AMC indicated some worrying trends. Theatres’ revenues were down to $1.3 billion, a figure that fell by 3.5% compared to the previous year, as ticket prices increased to a record of $12.86. Food and beverage prices also went up.
This drop in attendance was despite such big releases as Superman, Jurassic World: Rebirth, and Demon Slayer: Infinity Castle. Even big-name films failed to reverse the downward trend, though these blockbusters were supposed to boost attendance in the theatres. Analysts cite high ticket prices, lengthy pre-show advertisement breaks, and better options of watching at home as discouraging factors.
More and more Americans are opting to view movies at home. A survey by Civic Science revealed that 65% of adults prefer to stream newer releases in place of theatres. About 27% of the respondents mentioned the cost of tickets as the significant reason, and others mentioned the uninterest in modern films. More than half of them said that they do not watch films until the movies are on streaming sites.
This change has become a significant obstacle to AMC, whose whole business ethos is based on physical attendance. The availability of streaming services and big screen entertainment systems at home allows families to stay at home instead of spending money on going to the cinema.
AMC is, in its turn, preparing to change a lot. Based on the success of Taylor Swift and Beyoncé concert movies, the company is planning to introduce further live events; word to live concerts and sports broadcasts. It is also intending to upgrade the IMAX screens to have better sound, sight and seating configuration.
In future years 2026, AMC will expand its application of artificial intelligence to increase the efficiency of its operations and provide a more captivating experience to the guests. The company is even considering collaborating with Netflix and other streaming services to host unique events in its cinemas.
CEO Adam Aron is also optimistic, declaring that he believes they will have a better box-office performance at the end of the year and a significantly better 2026. However, as costs continue to rise, attendance is deteriorating, and with stiff competition from in-house entertainment, AMC has an uphill task of winning moviegoers back to the big screen.
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