AMC and Dolby to add 40 new Dolby Cinema locations

SAN FRANCISCO and LEAWOOD, Kan. - Dolby Laboratories, Inc. (NYSE: DLB) and AMC Entertainment (NYSE: AMC) are set to expand their Dolby Cinema at AMC locations by an additional 40 theaters across the United States by the end of 2027. This expansion, announced today, will increase the Dolby Cinema at AMC footprint by nearly 25%, totaling over 200 locations. For AMC, which currently operates with annual revenues of $4.64 billion and carries a market capitalization of $1.24 billion, this strategic move comes amid challenging market conditions. According to InvestingPro analysis, the company faces significant operational challenges with a substantial debt burden of $8.28 billion.

Dolby Cinema, known for its state-of-the-art image and sound technologies, offers moviegoers a premium viewing experience with Dolby Vision and Dolby Atmos. The partnership extension between Dolby and AMC underscores both companies’ commitment to providing audiences with high-quality cinematic experiences.

The move by AMC to choose Dolby Vision as its preferred HDR technology further solidifies the premium offering, which has been popular among filmmakers and studios for delivering enhanced picture and sound quality. This announcement follows a year in which Dolby Cinema experienced its highest box office gross to date, indicating a growing consumer demand for premium moviegoing experiences.

Kevin Yeaman, President and CEO of Dolby Laboratories, emphasized the importance of premium moviegoing in today’s box office landscape. Adam Aron, Chairman and CEO of AMC Entertainment, echoed this sentiment, highlighting the decade-long collaboration that has aimed to elevate the cinematic experience for audiences.

The partnership capitalizes on a robust content pipeline from Dolby, with over 725 theatrical features released or slated for release in Dolby Vision and Dolby Atmos. This includes high-profile titles such as "Mission: Impossible – The Final Reckoning" and "Avatar: Fire and Ash," with 49 of the top 50 movies over the past five years being shown in Dolby Cinema. While AMC’s gross profit margin stands at approximately 14%, InvestingPro subscribers can access over 12 additional key insights and a comprehensive Pro Research Report, offering detailed analysis of AMC’s financial health and growth prospects.

Dolby Laboratories is a global leader in immersive entertainment experiences, while AMC Entertainment is the largest movie exhibition company in the U.S. and worldwide. This expansion is a testament to their shared vision of pushing the boundaries of cinema technology and audience engagement. With an EBITDA of $310.8 million and current trading price of $2.88, AMC continues to focus on premium offerings despite challenging market conditions.

The information for this article is based on a press release statement.

In other recent news, Amcor plc and Berry Global Group, Inc. have cleared a significant antitrust hurdle in the U.S., advancing their proposed merger. This development follows similar regulatory approvals from China and Brazil, with the merger expected to finalize by mid-2025. Amcor also announced the pricing of $2.2 billion in senior unsecured notes, with proceeds intended to repay existing debt in relation to the merger. Additionally, AMC Entertainment has partnered with CJ 4DPLEX to expand its 4DX and SCREENX theaters, introducing 65 new locations by 2027 to enhance the movie-going experience. Benchmark analysts have maintained a Hold rating on AMC, citing its strong fourth-quarter performance in 2024 and ongoing expansion of premium formats as positive factors. Meanwhile, National CineMedia has reintroduced an annual dividend and unveiled plans to boost advertising growth, including the launch of Bullseye, a new AI-driven solution for localized messaging. The company aims to enhance its advertising platform through strategic investments in technology and talent. These recent developments highlight significant strategic moves across the cinema and packaging industries.

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