AMC Entertainment Continues to Ride the Concert Film Wave with 'Renaissance: A Film by Beyoncé'

AMC Entertainment Holdings Inc. is excited to ride the concert film wave once again, as they prepare for the release of "Renaissance: A Film by Beyoncé" this Friday.

After the immense success of "Taylor Swift: The Eras Tour," which shattered records upon its debut on October 12, the movie-theater chain and popular meme-stock darling are looking to capitalize on this momentum.

In early October, Beyoncé's production and management company Parkwood Entertainment, in collaboration with AMC, announced that "Renaissance: A Film by Beyoncé" will be screened in AMC theaters across the United States, Canada, and Mexico starting on December 1. AMC has also obtained global distribution rights for the movie.

Benchmark analyst Mike Hickey predicts that the opening weekend box office revenue for "Renaissance" will range between $14 million and $25 million. He notes that the film has already generated significant pre-sales and ticket volume, similar to the second weekend of "The Eras Tour." Furthermore, the average ticket price for "Renaissance" exceeds $20. On a global scale, the film aims to achieve an opening weekend revenue of $35 million to $40 million (Variety).

AMC Shares Continue to Rise, Outperforming the Market

AMC shares showed a promising increase of 2.8% on Friday, surpassing the 0.6% gain of the S&P 500 index. Although the company experienced a decline earlier in the week due to disappointing box-office performance by Walt Disney Co.'s new animated adventure film "Wish," things are looking up for AMC.

During a recent conference call discussing AMC's third-quarter results, CEO Adam Aron expressed excitement about the potential of concert films. Aron mentioned that working with globally admired pop stars Taylor Swift and Beyoncé has been a positive experience, and he sees this as a stepping stone for more projects in the future. He specifically mentioned the anticipation of several concert film releases in 2024 and 2025, with collaboration from some of the most renowned musical artists.

Despite experiencing an 81% drop in 2023, in contrast to the S&P 500 index's 19.7% gain, AMC's recent progress suggests a positive outlook for the company.

Related: AMC well positioned for 2024, boosted by strong Q3 results and Hollywood actors strike deal, analysts say

Jon Swartz contributed.