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After a three-month dispute, Universal Pictures and AMC Theatres, the world’s largest film theater chain, have reached an agreement that may have primary ramifications for the long-term film.
AMC and Universal announced Tuesday that the much-discussed theatrical window would be reduced to 17 days, meaning Universal’s videos can debut in premium video on demand 17 days after its premiere in AMC theaters. The past theatrical show lasted between two and 3 months.
It is a radical replacement for a formula that Jeff Bock, a senior media analyst in relationship rate with exhibitors, described for Business Insider as “archaic.”
The dispute between AMC and Universal began in April after Universal’s “Trolls World Tour” reached PVOD platforms on the same day they were due to open in theaters, which have been largely closed in the United States since March due to the pandemic. The film’s obvious good luck received praise from NBCUniversal Jeff Shell, who said that “as soon as the theaters reopen, we plan to release movies in any of the formats.”
Adam Aaron, ceo of AMC Theatres, liked it and sent a letter to Universal Filmed Entertainment Group president Donna Langley, refusing to play Universal’s long-term premieres in one of the channel’s theaters.
But now that the two have come to an agreement, this raises many questions, including:
There are no transparent answers to those questions at this time, however, Bock is confident that other film networks and film studios will queue.
“The Universal and AMC agreement necessarily requires other studios and operators to play a game, which can lead to the maximum dynamic replacement the film industry has noticed since its inception,” Bock said.
Shawn Robbins, a leading analyst at Box Office Pro, was not so interested in reporting such a seismic replacement for the industry given the uncertainty of the agreement. He also noted that Universal has no primary pitches on the theatrical calendar until next year, so the effect of the deal may not be felt immediately.
“The studio recognizes the importance of theatrical performance, so it’s hard to believe they’ve taken a film like ‘Fast 9’ or ‘Jurassic World: Dominion’ on PVOD after only two or three weekends, especially given the lack of foreign offers on the PVOD front and the increased threat of piracy for any film once it is available for broadcast Robbins said.
The Tentpole films from Universal’s “Fast and Furious” and “Jurassic World” franchises generate huge profits at the global box office. Universal, and other studios, if they stick to it, would probably compare the movie premieres on a case-by-case basis with what is appropriate for a prolonged theatrical release and what they deserve to temporarily go online.
After all, the studios have already done the pandemic with closed cinemas, being “Trolls World Tour” the film that really started things. Studios have become very concerned in theaters through film reprogramming, infrequently indefinitely, such as Disney’s “Mulan”. But other films have gone straight to streaming or digital, such as Warner Bros. ‘Scoob!
“Rationalizing to better satisfy customers’ tastes is a long time ago,” he said.