Universal Pictures and AMC Theaters have lifted a bitter feud and signed a multi-year agreement that will allow studio films to premiere on premium video on-demand within three weeks of their theatrical debates.
Pact is sure to send shockwaves to the exhibition industry, with the ability to revisit the methods of marketing and distribution of films. Rival studios for exhibitions, and are likely to begin to emphasize in order to provide greater flexibility when it comes to determining that made their way when their theatrical release and how home entertainment platforms.
Financial terms of the agreement were not disclosed. However, in a statement, AMC CEO Adam Aron said the company would “stake in these new revenue streams”, meaning it would deduct any money made on these digital rentals. Universal only has the ability to keep their films on premium on-demand, meaning rentals that go for around $ 20 a pop. Three months after the debut in theaters until it sold the film to reduce on-demand fees in the $ 6 range from $ 3 or can not rent them.
Even though Universal could, under this new agreement, theoretically install premium on-demand installments for 17 days after the next “Jurassic World” or “Fast and Furious” debut, they would likely make more exclusive runs in theaters . Instead, studios have the option to capitalize on their newfound freedom with mid-budget rentals, comedy and horror films that may not be as strong in theaters. But expect better movies on the big screen than smaller movies, so Universal can wait to put it on digital rental services. On its upcoming slate, Universal has “Minions: The Rise of Grew”, “Halloween Kills” with Jamie Lee Curtis, and the detective thriller “355” with Jessica Chastain, Penelope Cruz and Lupine Nyongo.
The deal began after AMC Universal vowed to stop showing films after the studio simultaneously decided to unveil the “Trolls World Tour” on the digital platform and in the studio and the world’s largest theater chain, one the duration of hostilities between the refrigerant over the theater during the coronavirus epidemic are still open.
On Tuesday, with both sides doing well, Universal praised the viability of the big screen and accepted the AMC decision as a sign of their desire to innovate.
“Theatrical experience remains the cornerstone of our business,” said Donna Langley, president of Universal Filmed Entertainment Group. “The partnership we have with AMC is driven by our collective desire to ensure a thriving future for the film distribution ecosystem and to meet consumer demand with flexibility and flexibility.”
For its part, Aron said, “with a focus on long-term health of our industry, we will consider that as the restaurant was concluded despite the kitchen in every house, AMC is very confident that the filmmaker heavy Our cinemas will be out in numbers in the post-epidemic world. As people enjoy getting out of their homes, we believe that the mysterious escapades and magical communal experiences offered in our theaters will always be a fascinating draw, because It has our big screen, big sound and big seats that do not mention our attractive aroma. Fully prepared popcorn. “
For years, Universal and other studios pushed to shorten the window, industry transit for the period between the film’s theatrical release and its debut on home entertainment. Traditionally, that structure of exclusivity has lasted for 90 days, maintained by theater owners to prevent customers from leaving theaters and waiting until the film is available in their homes. But the studio has griped that those words are onerous. They are the most lucrative at the box office a few weeks before the release movies that are maintaining it and are looking forward to on-demand three months to film and give them ads on other platforms and public again It costs more money to get acquainted with.
However, COVID-19 has changed the dynamics of power in the relationship between studios and theaters. The bulk of theaters in the United States remain closed because of the virus, and plans for a large-scale national reopening have repeatedly delayed as cases bounce in the south and on the west coast. Theaters do not have a one-time benefit and are looking for ways to make money at a time when it is unclear whether customers are moving to safe theaters.
At the same time, Universal got a time when most of the country still continued with its strategy to bypass theaters on staying home financial success. On-demand platforms have been booming during the epidemic, and Universal estimated that five million people hired the “Trolls World Tour” in its first few weeks, generating nearly $ 100 million in sales. Empowered by those figures, it debuted the premium on-demand Jude Apatow comedy “King of Staten Island” this summer and put films like “Inma”, the Jane Austen adaptation, on-demand from its indie label Focus. The release was cut by coronovirus closure.
In the past, Universal has perhaps been the most aggressive in pushing the boundaries of the release window in theaters and has tried to find ways to offer its movies to consumers of first home entertainment, Ben plans to offer his abortion the exhibition running community afoul Stiller and Eddie Murphy comedy “Tower Heist” on-demand within weeks of the beginning of 2011. In that case, Universal backed theaters after threatening to stop showing their films.
In the coming weeks, the two companies will begin discussing international distribution agreements served by countries in Europe and AMC in the Middle East.
While struggling to reopen the theaters across the country, AMC has been unhappy with the concerns of its liquidity. Before the pandemic closed its locations for four months, the company was heavily indebted due to expensive renovations of its locations and deals to acquire rivals such as Odeon and Carmike Cinema. At the same time, AMC has looked on the verge of filing for bankruptcy, but it redefine the terms of your loan recently that help to clean up its balance sheet.