Disney Joins AT&T in the War on Theaters
The return to life as normal can't occur fast enough for movie theaters and their investors. Shares of Cinemark Holdings (NYSE: CNK) are down nearly 40% in the last year and AMC Entertainment Holdings (NYSE: AMC) stock has collapsed nearly 70% as concerns the company is months away from bankruptcy have rattled investors.
It's understandable theaters would struggle in the midst of pandemic lockdowns. However, investors should ask if a more consequential shift is afoot in this century-old industry. Increasingly, it appears that the underlying business model is starting to become a victim of disruption, and the most recent announcement by management at Walt Disney (NYSE: DIS) is further proof the industry is unraveling.
Image source: Getty Images.
Source Fool.com
