The movie industry underwent significant changes during the Covid pandemic. Theatrical releases were initially replaced by the day-and-date model, where movies were simultaneously released in theaters and on streaming platforms. However, as cinemas reopened, studios realized the importance of a theatrical release. Theatrical screenings serve as advertising and generate revenue through subsequent home entertainment windows.
AMC Entertainment made a bold move by partnering with Taylor Swift for her concert film, “The Eras Tour.” The decision to bypass traditional studios and directly exhibit the movie in theaters was attributed to Scott Swift, Taylor’s father. This move proved lucrative as Taylor’s massive social media following served as a promotional tool, resulting in $100 million in global advance ticket sales. AMC hired distributors to book cinemas nationwide and handle overseas releases, circumventing antitrust concerns.
Taylor Swift’s strategic marketing approach played a crucial role in the success of “The Eras Tour.” By releasing the film on a date representing her lucky number and offering discounted tickets, Swift targeted her fan base effectively. Despite initial hesitance to preview the movie, last-minute alterations contributed to its success. The film’s performance surpassed expectations, becoming the biggest opening for a concert film globally and the second-biggest domestic opening for October.
AMC negotiated deals wherein 43% of the gross revenues remained with theaters, while the Swifts and AMC shared the remaining 57%. Distributors received a fee for their services. The movie’s subsequent sale to Disney+ for $75 million underscored its popularity, becoming the most-viewed concert film on the platform. Swift’s collaboration with Disney+ included additional content not featured in the theatrical release, enhancing its appeal to fans.
The success of “The Eras Tour” prompted AMC to delve further into concert films, acquiring Beyoncé’s “Renaissance: A Film.” While the latter did not match Taylor Swift’s impact, it indicated AMC’s foray into a new revenue stream. Contrary remarks from Wall Street sources regarding AMC’s profitability from concert films were dismissed by CEO Adam Aron, citing the overall distribution and exhibition profits from such ventures.
AMC’s innovative approach to distributing blockbuster concert films signals a shift in the movie industry’s traditional landscape. By capitalizing on the popularity of renowned artists like Taylor Swift, AMC has not only generated substantial revenue but also diversified its offerings. The success of “The Eras Tour” underscores the importance of strategic marketing, theatrical releases, and exploring new sources of revenue in a rapidly evolving entertainment landscape.