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AMC agrees to show more ads before movies after years of opposition

The news: AMC Theaters has made a deal with National CineMedia (NCM) that will see the biggest US theater chain run additional ads before showings, per Bloomberg.

Beginning July 1, AMC showings will include a “platinum spot” right before a film starts. AMC will receive a portion of the ad sales, which a spokesperson described as “vital revenue.”

Zooming out: The decision comes after years of AMC being the standalone major theater chain to reject a deal with NCM for the platinum ad spot, claiming previously that US viewers would react negatively to the additional ads.

But the tides have turned for AMC amid broader financial struggles. AMC experienced its worst start to a year in Q1 since 1996, excluding during the COVID-19 pandemic—and while box offices have seen a comeback in recent weeks after a record-breaking Memorial Day weekend, AMC has had to compensate by introducing 50% discounts to tickets on Wednesdays starting in July.

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