AMC Entertainment, Inc., the second largest movie theater chain in North America, has just shuttered a local movie house. Over the years, thousands of parents have dropped off their children at the front of the theater for a night at the movies
Jerseyville is a small rural town in Illinois that serves as the county seat. The decades old theater now owned by AMC that sits across the street from the vacant Moose Lodge is now closed as well. What makes the closing so sad is the fact that the theater was profitable, it just doesn't seem to fit the business model of the huge conglomerate that recently purchased it.
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| (Jerseyville, IL USA) Traffic passes the Stadium Theater the last night of operation by AMC Entertainment, Inc. The closing marks the end of a theater that had been in operation since 1949. |
At the time this is written, AMC has the theater listed for sale at $770,000. The facility was last sold for less than $73,000 several years ago. Many believe this is a tactic used by AMC to stifle competition. One regional theater operator said recently in a local newspaper interview that facilities AMC owns and abandons are usually set for sale at such high prices, no other theater operator is able to purchase them.
“If you look and see what they’re trying to sell it for, from my perspective, it is impossible to even consider any type of business plan that will work on $770,000. I couldn’t charge $20 a ticket and figure out how to pay that,” he said. “What I believe their goal is, is to let it sit on the market for a period of time. When they say ‘Well, we don’t have any serious buyers,’ then they’ll donate it to the city.” The man went on to say that once given to the city there will be a stipulation that the building cannot be used to show motion pictures.
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| (Jerseyville, IL USA) One of the last customers stands at the concession counter of the recently shuttered Stadium Theater waiting for popcorn. There is no more candy in the display for sale, only free popcorn and soft drinks provided at what may be the last show ever to take place in the facility. |
AMC seems to be closing smaller theaters in order to force people to travel to bigger, more lucrative locations. This small town loses a profitable business and tax revenue. Local residents will need to travel further and spend even more money to reach other theater locations as gas prices climb and the recession doesn't seem to want to go away anytime soon.
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| (Jerseyville, IL USA) The crowd patiently waits for free popcorn and soft drinks before the last show at the Stadium Theater. People in line reminisced somewhat sadly about past times at the theater, while the younger children expressed delight about being able to being able to get all the free popcorn and drinks they could on this one occasion. |
As could be expected, an AMC representative said the company’s asking price for the Stadium Theatre is not an arbitrary number, as some have claimed. (Personally, I think it's calculated to minimize the ability of anyone to utilize the facility for its intended use as a theater and hinder competition.)
“When the sale of a theater or building becomes necessary, AMC works with a local broker to determine an appropriate asking price for the property, which is what we have done in Jerseyville,” he said.
The representative also said he is not aware of any stipulations attached to the sale of the Stadium Theatre at this time. He went on to say that if the price were reduced, stipulations preventing its use as a movie theater would not be added. He did, however, say those stipulations have been added in other instances.
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| (Jerseyville, IL USA) The Stadium Theater starts to fill with patrons as the theater gets ready to have one last showing. The movie to be shown was Frank Capra's "It's a Wonderful Life". The theater was showing the movie on the screen via a DVD rather than film. The other theater screen immediately behind the projection booth of this space was showing "How to Train Your Dragon". |
At the last showing, there was no noisy 35mm film running through a projector, only an almost silent DVD drive spinning in a computer connected by a cable to a digital projector. The projection room still contained most of the equipment needed to show a film, but it wasn't used. The manager explained that the film projection equipment will be obsolete soon as theaters are changing to digital media.
I suppose a Frank Capra movie could be a fitting end to a local landmark if it can't be reopened. Seems such a shame to close it since it's profitable and especially more so to do it at Christmas.
Merry Christmas AMC. I hope you get a stocking full of old maids!
