Universal Pictures and AMC Theaters have closed a major new deal regarding release of film on demand. In a multi-year deal, films released by Universal Pictures may be available on premium videos on demand channels only three weeks after their theatrical release.
The specifics regarding the financials were not announced, however, AMC CEO Adam Aron expressed that AMC theaters would receive one percent of the revenue from these digital releases.
It is important to note that this deal only applies Premium Video on demand channels. Meaning, these digital releases will be available for around $ 20 each. Universal Pictures films will not be available for video on low-fee demand channels until three months after release in theaters.
Donna Langley, chairman of Universal Filmed Entertainment Group, made the following statement:
“Theatrical experience remains the cornerstone of our business. 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. “
The film landscape will briefly feel the impact of COVID-19, as cinemas across the nation will remain closed. The deal is sure to affect the industry even further.