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In 2017 AMC made 5 billion in revenue and took home 500M in cash. I would say they are doing just fine. https://www.nasdaq.com/symbol/amc/financials?query=cash
by xivzgrev 8y ago
In 2017 AMC made 5 billion in revenue and took home 500M in cash. I would say they are doing just fine.
https://www.nasdaq.com/symbol/amc/financials?query=cash-flow https://www.nasdaq.com/symbol/amc/financials?query=cash-flow
I would disagree that movie theaters are hardly a monopoly. You usually only have one in a given geographical area. In a major metro you may have more options within a short distance but even then they are usually not walking distance from one another. And even if there are multiple options in same locale they may be same company and still a local monopoly. For example in Chicago, there are 4 movie theaters in downtown area, 3 of them AMC.
- savanaly 8y ago>In 2017 AMC made 5 billion in revenue and took home 500M in cash. I would say they are doing just fine. That's why I was careful to say "economic profit". On the books numbers are all well and good. But the only indicator I'll take as a sure sign that an industry is profitable in the economic sense is if the number of firms in the market is climbing (i.e. new people are scrambling to get in on whatever benefits they perceive there are to being on the supply side of the market). And movie theaters seem to be more or less in an equilibrium to me.
- hunter23 8y agoIsn't that definition a bit flawed? By this logic, wouldn't Google's search product and their industry be economically unprofitable? The number of search firms is not climbing (in fact its dropping) but Google's search business makes lots of profit (and growing).
- mmt 8y agoYour counter-example describes profit/growth due to monopoly. Perhaps the parent meant a distinct defintion, for a competitive industry.