AMC Stock Rises 5% on Launch of On-demand Streaming Service
Shares in AMC Entertainment Holding Inc. (NYSE: AMC) jumped 5% to $9.42 per American depositary share on Tuesday afternoon on news that the company is launching its new digital movie service, AMC Theaters on Demand, available exclusively to AMC Stubs members.
The largest cinema company in the United States, owned by Chinese conglomerate Wanda Group, said AMC Stubs members can rent or purchase around 2,000 movies from top Hollywood studios. The demand service can be accessed through AMC's website or mobile app, and leading Smart TV providers, the statement said.
"With more than 20 million AMC Stubs households, and with our web site and smartphone apps already being visited hundreds of millions of times annually by movie fans, AMC Theatres is in a unique position to promote specific movies with greater personalization than has ever been possible before. Through the launch of AMC Theatres On Demand, we can reach movie lovers directly and make it easy for them to access films digitally," Adam Aron, the chief executive officer and president of AMC said in a statement.
AMC said it will report its third-quarter results on Nov. 7.
Earlier this week, AMC announced that Craig Ramsey, its chief financial officer of 25 years, is planning to retire in February.
Worldwide, AMC operates approximately 1,000 theaters and 11,000 screens.