2020 A Massive Disaster For Telugu Cinema

AMC Entertainment, the Biggest Cinema Theaters Chain in the United States is already shut and the experts expect it to remain shut at least until August. The latest news by New York Post read as “AMC Entertainment is inching closer to a possible bankruptcy”.

Financial Experts say that this would mean an end to the country’s most-celebrated theater chain, as it is likely to file for bankruptcy as its cash reserves are depleting.

In the wake of the COVID-19 pandemic, AMC shuttered its 630 US theaters on March 17 and furloughed 25,000 workers. AMC Chief Executive Adam Aron has recently insisted that AMC will be up and running by mid-June, but some analysts have already been predicting a bankruptcy.

It has also informed its landlords that it will not pay rent starting in April while its cinemas are shut. The current cash reserves will help it only till June or July. If the chain goes bankrupt, it will have a major impact on Telugu Cinema.

If this is the case with a big chain, we can imagine the condition of the small theaters. The overseas market will no longer be profitable for Tollywood, as the movies will also struggle to have a decent release there.

Overseas market is the major contributor to the star movies’ revenues in recent years. If that is impacted, everything from the movie budgets to remunerations will have to be negotiated. The deals that are already sealed will also be re-negotiated which will make things even tough.