Taylor Swift announced on Thursday her Eras Tour will be heading to movie theaters in October, sending AMC stock (AMC) up as much as 6%.
The pop star confirmed a film version of her show will debut in theaters, beginning on October 13.
In a separate press release, AMC called the movie the "theatrical event of the Millennium." Other theater stocks like IMAX (IMAX) and Cinemark (CNK) also moved higher on the news.
The release will be a welcome event for theater chains struggling to fill the rest of the year's box office slate amid the ongoing Hollywood strikes.
Warner Bros.' (WBD) "Dune" sequel was recently delayed to March 2024 after originally scheduled for November 2023.
Kevin Klowden, chief global strategist at the Milken Institute, estimated the current strikes will soon cost the national economy $5 billion-plus, upwardly revising his previous estimate of $4 billion.
"The main thing we're really factoring into it is the lost wages," Klowden told Yahoo Finance Live in an interview on Tuesday.
On top of lost wages, Klowden said delayed films like "Dune" and canceled programming, such as Amazon's "A League of Their Own," will also heavily contribute to losses.
Amid the ongoing strikes, there were still quite a few positives within the entertainment industry this summer as Taylor Swift, fellow performer Beyoncé, and the box office success of "Barbenheimer" helped lift the US economy in the third quarter.
Combined, the concerts and blockbuster films are expected to add $8.5 billion to US growth in the current quarter, according to a new note from Morgan Stanley released on Wednesday.
"Consumer spending in 3Q23 is benefitting from large one-offs in consumer spending on 'Barbenheimer,' Taylor Swift's 'The Eras' tour, and Beyoncé's 'Renaissance' tour," Morgan Stanley economist Sarah Wolfe wrote.
Still, the analyst warned the lack of those "one-off" events could have the opposite effect on the economy in the back half of the year: "The unwinding of these events, combined with the expiration of the student loan moratorium equal 1.4% downside to real [Personal Consumption Expenditures] in 4Q23."
As Swift's shows in North America come to a close, perhaps the theatrical release of the Eras Tour will lead to an additional boost.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at [email protected].
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