Movie theaters, closed for months, preparing for July reopenings

After three months of near total blackout of cinemas nationwide, movie theaters are preparing to reopen—even if it means only a few titles on the marquee and showings limited to as little as 25% capacity.

AMC Theaters, the world’s largest theater operator, said Tuesday that it expects to have up to 98% of its theaters worldwide reopened by mid-July. The National Association of Theatre Owners, the trade group that represents exhibitors, expects some 90% to 95% of cinemas around the world will be opened by mid-July.

In most of Indiana, movie theaters can reopen at 50% capacity on Sunday, June 14, when the state enters Stage 4 of its reopening plan (Marion, Lake and Cass County have been trailing that plan). That doesn’t necessarily mean they will reopen, only that they have the option to under the guidelines.

A lot is still “fluid,” as AMC Entertainment’s chief executive, Adam Aron, said in a call Tuesday with investors. But providing that flare-ups of the coronavirus don’t unmake plans, the industry is gearing up for a dramatic resumption of widespread business just in time for Christopher Nolan’s “Tenet.” The Warner Bros. thriller, the latest from arguably Hollywood’s most passionate defender of the big-screen experience, is slated for release July 17.

Warner Bros. didn’t comment late Tuesday, and the most recent trailer for “Tenet” was notably vague on its release date. But theater owners are cautiously optimistic that “Tenet” will hold where it is. Aron said that AMC’s conversations as recent as Monday with Warner Bros. and Disney, which has “Mulan” slated for July 24, have been reassuring.

The larger question might be whether moviegoers feel safe returning to theaters. Health officials have warned that large indoor gatherings are risky. Broadway theaters will remain dark through at least early September. It will be up to movie theater operators to convince moviegoers that it’s safe to once again sit in the dark among strangers.

Only recently have state guidelines allowed the reopening of theaters in California (including in the country’s top market, Los Angeles, where local officials have yet to agree). In New York City, open cinemas come in Phase 4 of its reopening schedule; it began Phase 1 only on Monday. Aron granted New York theaters, which constitute the second largest market, may not open in time for “Tenet.”

Theaters have slowly been reopening in other areas of the country, while a renaissance of drive-ins has flourished. Cinemark, which operates about 6,000 U.S. screens has said it will begin reopening in late June and fully reopen by July 10. Cineworld, which owns Regal Cinemas, the world’s second-largest chain, is also tracking for a July reopening.

But AMC’s announcement Tuesday signaled the most ambitious and widespread plan for a resumption of business.

“After a period of time where billions of people have endured confinement and limited social interaction, we believe that there will be a significant pent-up demand to get back out in the world,” said Aron. “Having said that, we’re under no illusions. The waters will be choppy. There may be unforeseen tosses and turns to be navigated through. And full recovery may take quite a while.”

AMC, like other chains, expects to limit audience sizes to facilitate social distancing, including keeping cinemas 25% to 50% full and blocking out seats. Cinemas will be regularly cleaned. Ordering concessions will be possible from an app. As a kind of test case, AMC has already opened 10 theaters in Europe. Three theaters in Norway sold 83% of available tickets, said Aron.

Although 25% capacity may sound like an untenable business model, Aron said movie theaters are usually part-empty, calling them—unlike typically sold-out Broadway theaters—“a church built for Easter Sunday.” He was optimistic box-office returns wouldn’t be badly jeopardized, especially since 12- to-20 screen multiplexes will likely be showing only a handful of films. With so many working from home due to the pandemic, moviegoing may also not be as focused on Friday and Saturday.

Before “Tenet” arrives, theaters will play—just as those that are currently open are showing—recent and classic catalog offerings. The Russell Crowe thriller “Unhinged,” from Solstice Studios, is also set for July 1. Shortly after AMC’s announcement, Sony Pictures said it will roll out the romantic comedy “The Broken Hearts Gallery” on July 10, only in theaters.

“We have faith in a theatrical rebound, and we look forward to being there right out of the gate with our exhibition partners’ anticipated reemergence, as—and when—state-by-state safety guidelines are met,” said Josh Greenstein, president of Sony’s Motion Picture Group.

The prolonged closure has had a crushing effect on theater chains, forcing the furloughing and firing of tens of thousands of workers. Rumors of bankruptcy have swirled around AMC. On Tuesday, it said it lost $2.18 billion in the second quarter. Ticket sales have overall been on a slow decline. Aron acknowledged some cinemas will stay shut.

Though a handful of movies have been steered to streaming or on-demand platforms during the pandemic, most studio films have been postponed until theaters reopen. Universal Pictures has moved more aggressively to digitally distribute some of its films, drawing the fury of theater owners. AMC, which previously said it would cease playing Universal releases, said Tuesday that it remains in “active negotiations” with the studio but that no Universal movies “are currently on our docket.”