AMC Entertainment Holdings Inc. (NYSE: AMC) shares saw a small bump on Wednesday after the firm announced a new tier to its AMC Stubs rewards program. This isn’t the first time that we’ve seen AMC roll out a plan like this to get more people in the theatre.
AMC has struggled over the past 52 weeks to get more customers through its doors, and it seems to be pulling out all the stops with these loyalty programs that it keeps rolling out. Keep in mind that just two years ago this was a $35 stock.
Over the past year, the stock is down about 34%. However, in 2018 alone shares have seen an increase of roughly 7%, so it could be argued that these programs might not be all that bad for business. But the impact of this most recent addition has yet to be seen.
As for the plan, the company is now offering the AMC Stubs A-List, which rewards guests with up to three movies per week, along with all the benefits of AMC Stubs Premiere, for roughly $20 per month. Through AMC Stubs A-List, members can enjoy any available showtime, any AMC location, and any format.
AMC Stubs A-List can be used at the spur of the moment or also can make planning ahead days or weeks in advance possible, as securing tickets is made easy via reservations capabilities on the AMC Theatres website or on the AMC Theatres smartphone app.
AMC Stubs A-List is part of AMC Stubs Insider and AMC Stubs Premiere in AMC’s fast-growing AMC Stubs loyalty program. In addition to seeing up to three movies per week, AMC Stubs A-List members also enjoy all the benefits of AMC Stubs Premiere, including free upgrades on popcorn and soda, free refills on large popcorn, express service at the box office and concession stand, no online ticketing fees and 100 points for every $1 spent for the AMC Stubs A-List monthly fee and food and beverage spending at AMC theatres. AMC Stubs Premiere members receive a $5 reward for every 5,000 points earned, which translates to a 10% credit toward future AMC purchases.
Adam Aron, CEO and president of AMC Theatres, commented:
We believe that our current and future loyal guests will be interested in this type of program, as AMC Stubs A-List rewards guests with something that no one else offers: the very best of AMC, including IMAX, Dolby Cinema and RealD 3D up to 3 times per week, for one simple, sustainable price.
Shares of AMC were last seen up about 2% at $16.55, with a consensus analyst price target of $20.70 and a 52-week range of $10.80 to $24.20.