Amazon is interested in buying struggling movie theater chain AMC in a surprising move that could ... [+]
Amazon is making moves to show the power of physical in the phygital—physical + digital—equation in customer experience. Amazon disrupted bookstores, grocery stores, cloud computing, pharmacies, streaming, and more, but it doesn’t stop there. The e-commerce giant could soon be taking over another place: the big screen.
Amazon reportedly has its eyes on purchasing struggling movie theater chain AMC. In true Amazon fashion, the company is reportedly thinking outside the box to potentially tie in its other services at theaters or use some for distribution centers. The opportunity to cross-sell products and collect data on millions of movie-goers could be a huge boost to Amazon’s business and allow for more personalized and integrated experiences. And it could transform phygital experiences with a greater emphasis on physical, in-person interactions.
With 600 theaters and 200 million global customers, AMC is the world’s largest theater chain but has seen better days. Investing in a dinosaur method of delivering content—thousands of theaters have closed in the last few years—seems like a questionable move for Amazon. AMC shares dropped 85% in 2022 alone. But Amazon doesn’t usually make bad business decisions.
Instead, it seems the company has its eyes on revitalizing the space and adding to its expansive repertoire of experience opportunities—likely at a bargain. The deal could be a win for both sides and add another way for Amazon to blur the line between online and in-person experiences.
AMC Boosts Amazon’s Cross-Sell And Data Opportunities
Buying AMC could give Amazon a place to show its films and earn attention for awards.
But it’s more than just movies. As Amazon eyes innovative ways to expand its offerings through the movie theaters and collect data and insights from movie-goers, it has the potential to further expand its brand with stronger phygital and in-person experiences.
Amazon already owns MGM Studios and its own Prime streaming. Imagine moving your favorite original content to the big screen, where you could also pick up groceries or purchase your favorite Whole Foods items with cashierless checkout.
Adding Convenience And Prime Membership To Movie Theaters
In many ways, an Amazon and AMC acquisition is similar to when Amazon purchased Whole Foods. Many people questioned or criticized the move, saying it didn’t fit Amazon’s portfolio. But Amazon proved them wrong by expanding its brand and integrating customer-favorite Prime membership features into in-person shopping. The same could be true if Amazon purchases AMC and uses it to build its already large brand and deliver services to customers as they watch a movie. It’s the ultimate brand integration and convenience move.
What does this mean for other companies? Where Amazon leads, others follow. Amazon has set the bar high for fast delivery, personalized recommendations, and disruptive innovations. If Amazon is interested in buying AMC to build out its in-person experience, other retailers will likely look to find creative ways to blur that online/in-person line.
Modern customers want convenience and personalization. Amazon delivers that in spades by continually breaking the mold of a traditional retailer and finding new, often unconventional, ways to grow its business and serve customers in connected ways. Purchasing AMC could be the next step in that journey and a signal to all brands to brand out with connected experiences.
Blake Morgan is a customer experience futurist and the author of The Customer Of The Future. Sign up for her weekly email here.
