The Biggest Movie Chain Now Offering Its Own Credit Card
AMC Entertainment will be the first theater chain offering a credit card to loyalty program members.
Starting in 2023, AMC Entertainment will offer a credit card for Stub Hub members, the latest in a series of bold moves by the theater chain. Deadline reports the details of the offer, including that the card will be backed by Visa. While members of the AMC Stub Hub program already earn points for every dollar they spend, the new credit card will offer similar, but larger, offers to those that sign up.
The first AMC Credit Card promotion is a deal for cardholders that spend $50 within their first 90 days of receiving the card. Those users will earn $50 in AMC Stub Bonus Bucks that again, have to be spent within 90 days. Other rewards can be earned by using the credit card for every day purchases, including gas stations and grocery stores, instead of the current program that only rewards money spent at the theater.
AMC CEO Adam Aron explains the credit card as “The AMC Entertainment Visa Card is another example of AMC’s continued dedication to providing real value to moviegoers and strengthening the relationship we have with our loyal moviegoing guests. Until now, the theatrical exhibition industry is one of the few untapped major retail sectors that hasn’t offered consumers the opportunity to amplify their purchase power, accelerate their rewards, and demonstrate their loyalty through the use of a co-branded credit card.” What the CEO will not say, is that the largest theater chain in North America almost went bankrupt last year, only surviving thanks to smooth-brained Reddit users.
AMC stock has been described as a “meme stock” due to the influence of the sub-Reddit, Wallstreet Bets, which flocked to the stock after the Covid-19 pandemic forced theaters to close for months. Such is the influence of AMC shareholders, that Aron describes them as an “extremely important constituency for whom we care greatly.” With that tidbit of knowledge, a credit card offer that adds a whole new stream of revenue to the balance sheets, makes a lot more sense for the theater chain.
Demand for the AMC credit card is expected to be so high that the company has instituted a waitlist. Early applicants can win a contest, just by signing up, that will let the winner attend a red-carpet movie premiere. What movie, and win, is unknown, but to the average person a red carpet event would be a once-in-a-lifetime opportunity.
According to the latest numbers from BoxOfficeMojo, overall theater business is still down this year compared to pre-pandemic numbers. As of December 15th, the domestic box office is at $6,815,634,007, but by the same date in 2019, the box office was at $11,363,360,889. If AMC wishes to stay in business, it will continue to pursue new ways of making money, including credit cards, but also food.
Arriving next year, AMC Perfectly Popcorn will be available in stores around the country. In addition to microwavable popcorn, malls will be getting kiosks to sell freshly popped AMC popcorn. Under the leadership of Adam Aron, soon AMC will be in grocery stores, malls, and wallets across America, with a credit card just the start of the multi-pronged approach to keep the business solvent.
