Universal Pictures responds to AMC theatres refusal to play their films

Last Updated on August 5, 2021

Given that most of us have been under quarantine for what feels like 5,000 days, one might forgive a little quarantine-influenced hostility because we all know being stuck at home might cause the occasional rage blackout. This was the only thing I could think of when I saw that AMC Theatres declared they would refuse to play any films released by Universal Pictures in the wake of the TROLLS WORLD TOUR VOD release. AMC wasn't so much ticked by the release itself, in fact, they understood that the current state of affairs really gave them no other choice & they were fine with that. The kill shot was a statement in the "Wall Street Journal" from NBCUniversal CEO Jeff Shell that read "As soon as theaters reopen, we expect to release movies on both formats," referencing a shift in the day-and-date theatrical-VOD model. Soon enough, AMC CEO Adam Aron fired off the now infamous letter that put Universal Pictures on notice and now the studio has responded to Aron's lengthy declaration.

Universal isn't exactly retracting on what they said about releasing films on both formats but they are insinuating that Shell's remarks were taken out of context in the ”Wall Street Journal” and that this probably could've been resolved privately:

"We absolutely believe in the theatrical experience and have made no statement to the contrary. As we stated earlier, going forward, we expect to release future films directly to theaters, as well as on PVOD when that distribution outlet makes sense. We look forward to having additional private conversations with our exhibition partners but are disappointed by this seemingly coordinated attempt from AMC and NATO to confuse our position and our actions."

Universal's response is as classy as it gets, minus the subtle shade at the end, and it really just reiterates what they plan on doing moving forward. The comment in the ”Wall Street Journal” did not say they were abandoning theatrical releases. I got the impression that the theatrical window is their primary goal but they will look at other release avenues for certain films that could thrive on VOD. It's a fair assessment and not worthy of the harshness that was leveled on them by AMC. Universal did have plans to release TROLLS WORLD TOUR theatrically and even moved the film up to Easter weekend when NO TIME TO DIE became the first major release in the wake of COVID-19 to vacate its planned release date. Universal had no way of knowing that movie theaters nationwide would shutter their doors soon after TROLLS WORLD TOUR made the move. Given the circumstances, Universal still believes they made the right decision with the VOD release:

"Our goal in releasing Trolls: World Tour on PVOD was to deliver entertainment to people who are sheltering at home, while movie theatres and other forms of outside entertainment are unavailable. Based on the enthusiastic response to the film, we believe we made the right move."

Maybe AMC is just feeling the pressure. They've been hit hard by the pandemic and they already had a debt load before COVID-19 made matters worse. After AMC closed all of its doors nationwide, it was predicted that they would be forced to file Chapter 11 bankruptcy or they may not be able to even return once it was safe to reopen. The letter felt like a knee-jerk reaction by a brand that is stressed out and fighting to survive. It's also interesting that they didn't level the same anger at Warner Bros, who is also going the VOD route to release their animated film SCOOB! after they removed it from the theatrical release calendar in the wake of COVID-19. Maybe the SCOOB! release model change doesn't sting as much because it's not associated with bragging rights regarding $77 million in revenue, a figure Universal says has been achieved by TROLLS WORLD TOUR in just 3 weeks of VOD release. 

Where do YOU all stand on this? Did AMC jump the gun and overreact? Did Universal respond in the best way they could given the circumstances?