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Investing.com -- AMC Entertainment (NYSE:AMC) Holdings Inc., the largest US theater chain, has decided to increase the number of advertisements shown in its theaters before each movie, according to Bloomberg, citing people familiar with the matter. This decision marks a change in the company’s previous stance against such commercials.
The company reached an agreement with National CineMedia Inc., an entity that operates an advertising network in major theater chains, including AMC, Cinemark Holdings (NYSE:CNK) Inc., and Regal Cinemas. The agreement will allow more commercials to be shown in AMC theaters.
Starting from July 1, AMC theaters will introduce a "platinum spot" to be displayed on screens just before the beginning of a film.
The financially struggling theater chain will receive a portion of the revenue generated by these advertisements. This initiative is seen as a strategic move to increase the company’s income amid financial difficulties.
National CineMedia stock was higher by 4.8% at close following the news. AMC shares fell 3.2%.
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