Take a leaf from the Netflix playbook

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In the film industry, producers and movie goers both exert tremendous competitive force on the cinema operators. They are stuck between a rock and a hard place. Even worse is the impact of viable substitutes due to the rise of home theatre technology and blockbuster TV series.

In the film industry, producers and movie goers both exert tremendous competitive force on the cinema operators. They are stuck between a rock and a hard place. Even worse is the impact of viable substitutes due to the rise of home theatre technology and blockbuster TV series.

Let’s assume for a moment that industry consolidation continues or even speeds up. How many screens would AMC need before they take a leaf from the Netflix playbook and start trying out backwards integration to capture more of the economic value available in the value chain?