AMC is about to go bankrupt, depending on whether VR can usher in a turning point

Some people think that VR is a dangerous technology, because it gives viewers too much freedom and choice. Now Wanda's AMC is on the verge of bankruptcy. No matter how Wanda thinks, it can't make AMC come back to life. Wanda intends to use the popular technology of artificial intelligence to recover AMC.

Since Wanda's wholly-owned acquisition of AMC for US$2.6 billion, it has been questioned by many parties. Even if it is an important decision from the domestic to the international stage, Wang Jianlin's payment of this advertising fee is too exaggerated. In 2012, AMC was still a theater on the fringe of bankruptcy, and Wanda's premium purchases and the slow revenue growth of the theater in recent years have not made AMC "easy".

AMC is about to go bankrupt, depending on whether VR can usher in a turning point

For a "world's largest chain of cinemas" with 11,000 screens and 1,000 theaters, AMC should have a stronger explosive power. However, its market value once fell to 1.9 billion US dollars in the ups and downs, and the stock price in the beginning of August this year even fell 27%. Affected by this, AMC may be welcoming the first loss since its listing, and company CEO Adam Aron still ridiculed himself that “it is going to go bankrupt”.

According to the "Los Angeles Times" report, the North American box office of this summer file hit a 25-year low, and the reputation of the Hollywood series has also declined. To make matters worse, movie subscription service provider MoviePass has launched a "$10/month" viewing service, and AMC happens to be one of their cooperative theaters. This is anxious that they have quickly issued a statement threatening to bring the Moviepass to court, saying it has undermined the order of the film industry. But the discerning person can see the real reason - AMC has no money to play.

Under the circumstance, AMC is in urgent need of finding new sources of income, this time they are focusing on the realm of virtual reality. Dreamscape Immersive immediately responded, and for a VR company focused on offline, this is a rare opportunity. The company expects to set up six VR offline experience centers within a year and a half, while AMC will provide remodeled theaters and independent venues, and will take the lead in granting $20 million in Series B financing.

In the eyes of people, the VR industry is currently in the market downturn, which is tantamount to the behavior of holding a group to warm. However, AMC does not have no chance at all.

Dreamscape is always a "reliable" startup company

If you still have the impression that the big director Spielberg was not optimistic about vr technology at first, his early comments were also alarmist: "I think VR is a very dangerous technology because it gives the audience too much freedom and choice. Right, the film will no longer follow the script, which will affect the narrative itself."

Interestingly, Dreamscape is such a company that allows him to "face" support.

Spielberg, who is busy shooting "Player One" is clearly not a core member of the company. The behind-the-scenes Walter Parkes and Kevin Wall are the real behind-the-scenes drivers. The former was originally the head of the film business of DreamWorks, while Kevin Wall was Dreamscape has found the technical foundation for everything - the Artanim team.

The VR system to be installed in the AMC theater is largely supported by Artanim. The Swiss team's dynamic capture technology can accommodate up to six people, as early as the 2015 Siggraph, and the next year at the Sundance Film Festival. Influenced by the strong connections of Kevin Wall and Walter Parkes, Warner, MGM, and 20th Century Fox have become interested in Dreamscape.

For the first time, the project will benefit from Westfields, one of the investors. They provide a very important offline venue, the mall, which also laid the foundation for Dreamscape to expand the theater.

However, the mall experience clearly can not meet the "luxury team" behind Dreamscape, including Disneyland designer Bruce Vaughn, "Lord of the Rings" director Gore Verbinski, and Nolan's royal soundtrack Hans Zimmer, and the company's goal is also expanded with the team Gradually, the AMC can be said to be the right time.

In addition, Dreamscape intends to withdraw half of the $20 million financing to develop VR content for the AMC Center. A strong team and strong capital investment, it is not an idiot to earn extra income for AMC.

Dreamscape's content format allows AMC to avoid the positive competition of its peers

The experience of VR offline has long been nothing new. Excluding a small experience store, AMC still needs to face strong competitors such as IMAX, The Void and Zero Latency.

The IMAX Los Angeles store opened as early as January this year, followed by trials in Shanghai and Manhattan, and recently announced the addition of a new store in Toronto. The Void's storefronts and Utah, New York, Dubai and Canada have even collaborated with Disney to develop an exclusive offline experience of "Star Wars: The Secrets of the Empire", and Zero Latency has a game industry in the past. Sega's support, its arcade business is also "skinny camel than Ma Da."

However, Dreamscape's operating strategy is different. Although they are taking a multi-person large space experience similar to Zero Latency and The Void, the company does not intend to develop popular shooting content on the market. The “VR movie experience above medium and large scenes” is the ultimate goal of Dreamscape.

It's not hard to find that Zero Latency's collaboration with MGM Grand Casino Hotel has created a content that is biased towards shooting, and can be seen from the densely populated guns in the lounge. With the support of Sega, founder TIm Ruse said Zero Latency will build a brand based on the “VR arcade business”.

The IMAX, which should have been against the AMC in the content, has invested in Dreamscape, which is unexpected. From the storefront form, IMAX mainly uses modular room design to provide services for single people. Shanghai's offline pilots consist of many “small cabins”, which are different from the AMC's six-person experience.

Even if it avoids the positive competition of the industry leader, AMC has to consider the cost and passenger flow issues. Dreamscape revealed that the upcoming VR experience cost $1 million. Referring to the IMAX Los Angeles store's monthly revenue standard of $60,000, it will take some time to recover the cost (this is still the best case), and whether it can fill the AMC. The stomach is another issue.

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