As COVID-19 has largely kept theaters closed across the globe, movies which were slated for release during the past few months have either had their dates pushed back or have made the leap to PVOD or a streaming service. Universal Pictures has released a few films in this manner, including TROLLS WORLD TOUR, and it didn't sit exactly well with AMC Theatres, with CEO Adam Aron threatening that he would never again play any movies from Universal in his theaters. "It is disappointing to us, but [NBCUniversal CEO Jeff Shell's] comments as to Universal’s unilateral actions and intentions have left us with no choice," Aron said. "Therefore, effectively immediately AMC will no longer play any Universal movies in any of our theatres in the United States, Europe or the Middle East. This policy affects any and all Universal movies per se, goes into effect today and as our theatres reopen, and is not some hollow or ill-considered threat."
Thankfully, it seems that the two companies have made peace as they've made a multi-year agreement which will see the theatrical release window shrink down to 17 days. Following that time, Universal will have the option to make titles available on PVOD platforms, which includes AMC Theatres on Demand. That's not to say that every Universal film will wind up on PVOD after 17 days; if a film is still performing well, it will get to spend its full run in theaters. This will likely be the case for movies such as JURASSIC WORLD: DOMINION or FAST & FURIOUS 9, while movies which aren't expected to make a ton of cash in theaters will opt for an early PVOD release. In a statement regarding the new agreement, Adam Aron said:
AMC enthusiastically embraces this new industry model both because we are participating in the entirety of the economics of the new structure, and because premium video on demand creates the added potential for increased movie studio profitability, which should in turn lead to the green-lighting of more theatrical movies.
As Aron said, AMC Theatres will be receiving a cut of the revenues generated by the early PVOD release, but this deal is strictly between AMC and Universal. "This multi-year agreement preserves exclusivity for theatrical viewing for at least the first three weekends of a film’s release, during which time a considerable majority of a movie’s theatrical box office revenue typically is generated," Aron continued. "AMC will also share in these new revenue streams that will come to the movie ecosystem from premium video on demand. So, in total, Universal and AMC each believe this will expand the market and benefit us all. Focusing on the long-term health of our industry, we would note that just as restaurants have thrived even though every home has a kitchen, AMC is highly confident that moviegoers will come to our theatres in huge numbers in a post-pandemic world. As people enjoy getting out of their homes, we believe the mystical escape and magical communal experience offered at our theatres will always be a compelling draw, including as it does our big screens, big sound and big seats not to mention the alluring aroma of our perfectly prepared popcorn. Universal and AMC have partnered in bringing stellar movies to moviegoers for a full century. With this historic industry changing agreement, together we will continue to do so and in a way that should drive success for us both." There you have it folks. The typical theatrical release window is usually around 3 months, so 17 days is quite the departure from the way business has been done for years.
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