Shares of AMC Entertainment (AMC) - Get Report rose in premarket trading Tuesday after the company announced it was launching AMC Theatres on Demand, a home streaming service offering about 2,000 films to buy or rent for members of its AMC Stubs program.
As a promotional push, users who rent a movie distributed by Lionsgate or Paramount Pictures with their first purchase will be able to chose an additional three selections for free.
"The addition of AMC Theatres On Demand, which extends our movie offerings for AMC Stubs members into their homes, makes perfect sense for AMC Theatres, for our studio partners and for our millions of movie-loving guests," said CEO Adam Aron.
AMC is the largest movie theater distributor in the U.S. and world and said it has more than 20 million AMC Stub households. The company has agreements with every major Hollywood studio to make selections to add to the service.
"This is a great opportunity for us to both make our film titles available to movie customers and also increase awareness of our growing streaming services," said Ed Carrol, chief operating officer of AMC.
AMC shares are up 3.9% to $9.30 Tuesday afternoon.