Amazon has become known as a great disruptor. The multinational firm has disrupted how we shop. It has disrupted how bookstores, groceries, and pharmacies work. The company has made its mark on cloud computing and video streaming. Now the tech giant appears to be gearing up to take over the big screen.
Now Amazon is reportedly thinking of securing AMC. This move could usher in a new era in customer experience. The company would be in the best position to show the power of a phygital experience. It’s an amalgamation of two distinct areas, the physical and digital.
There’s no final word on Amazon’s purported plans to buy AMC. But that hasn’t stopped the company from already thinking about it. They're already trying to work out how it can enjoy the movie theater chain’s potential. Amazon is also said to be considering linking its various services with AMC theaters. Another possibility is to use some of their locations as distribution centers.
There’s also a golden opportunity that can come with bringing AMC into the fold. Amazon can cross-sell its products and gather data on countless movie-goers. This can provide Jeff Bezos’ company a big shot in the metaphorical arm. It also gives Amazon a chance to offer a more integrated and customized experience. It would transform the consumer’s phygital experience. Especially if it focuses on physical and digital interplays.
AMC holds the record as the world’s largest movie theater chain. It boasts about 1,000 theaters with over 11,000 big screens in the world. An estimated 350 million moviegoers visit AMC theaters every year.
Movie theater chain AMC’s star is starting to dim though. AMC isn’t the only one struggling. The number of movie screens across the country has gone down. Experts are saying this is the direct result of the coronavirus pandemic. Theaters closed for years. The global lockdown also pushed people to subscribe to streaming platforms.
Many would think this investment is a losing proposition. Offering a limited selection of shows does seem a medieval way of delivering content. Especially now that there are almost 50 streaming platforms in the US alone. AMC shares have also plummeted by 85% in 2022. But Amazon isn’t known for taking things at face value. The company will have a good reason for its business decisions.
It does look like Amazon is cooking something up. The global company appears set to resuscitate the space. It’s also expanding its wide-ranging repertoire of experience options. They’ll also do this at a bargain price.
The AMC deal could become a triumph for both parties. It can also give Amazon another way to merge in-person and online experiences.
Giving Amazon’s Data and Cross-Selling a Boost
Closing the AMC deal can also give Amazon a place to showcase its films. It can be a great way to shine a spotlight on them and grab the attention of award-giving bodies.
It would be wrong to assume securing AMC is only about movies. Amazon is always looking for revolutionary methods to broaden its offerings. It can do this via movie theaters. They can also collate insights and data from movie-goers. This allows them the opportunity to expand their brand further. It also opens the floor to more dynamic phygital experiences.
Amazon already has MGM Studios and the popular Prime streaming. But imagine what else the company can offer if they add AMC to the mix. They can bring your favorite Prime original content to the widescreen. The theater can also become retrofitted for groceries. You can even buy your preferred Whole Foods items using a cashier-less checkout.
Bringing Convenience and Prime Subscriptions to Theaters
Many have pointed out the similarities between AMC's proposed acquisition with Whole Foods. Many people were then surprised when Amazon bought the supermarket chain. A large sector even criticized Amazon’s decision. They said it was at odds with Amazon’s e-commerce portfolio.
The company proved all those haters wrong. They expanded the Whole Foods brand. They even integrated favored Prime membership features into the shopping experience. Amazon can use the same playbook if it ever buys AMC. The company can then use the theater chain to bolster the Amazon brand. They can deliver prime services to customers as they enjoy a movie. It’s an astounding culmination of convenience and brand integration.
The question now is what could this scenario mean for other companies? After all, Amazon is always the trailblazer. Other companies will follow its lead. Amazon has already set the bar high when it comes to fast delivery. It’s also unmatched in customized recommendations. The company’s innovations are also unrivaled.
If Amazon does express interest in AMC, other shops will follow. They'll also launch creative means to blur the personal/online distinction.
Panasonic has already started down this road. The company is set to give consumers a phygital experience at this year’s CES. The tech giant will provide both a physical and a digital booth at the event.
Today’s customers are all for personalization and convenience. These are two things Amazon delivers. It keeps pushing the boundaries of conventional retail. The company is also dedicated to discovering new ways to expand its business. These methods are often unconventional but they work. They serve consumers in various ways that are all interconnected.
Buying AMC could well be the next step in Amazon’s evolution. It will signal other companies to branch out. This can also push businesses to experiment with connected experiences.