Universal and AMC Theatres reaches an agreement that allows the studio to release their movies on-demand after only three weeks in theaters. In the earliest days of the coronavirus pandemic, Universal made headlines by bypassing a traditional theatrical release for animated sequel Trolls World Tour, choosing instead to release it digitally on various platforms. This move angered AMC, who responded by saying they would no longer screen Universal movies at their locations. As recently as June, the two sides had yet to reach some sort of deal.
Since Universal’s upcoming slate includes highly-anticipated blockbusters like Fast & Furious 9 and Jurassic World: Dominion, the expectation always was Universal and AMC would iron out their differences. With AMC in an extremely tight spot financially due to the pandemic, they’ll need all the business they can get once their locations reopen across the country, and showing major franchise installments in a great way to draw in audiences. Months after the two parties initially bickered, there’s now a new deal – but it represents a massive changing of the guard for theaters.
Today, Universal and AMC Entertainment announced that Universal movies will have to commit to a three-weekend (17-day) window of “theatrical exclusivity.” Following that, the studio then “will have the option to make its titles available across premium video on demand platforms, including AMC Theatres On Demand.”
The key component of this, of course, is that it’s Universal’s call if a movie goes to on-demand after three weekends or not. This means that presumably not every Universal release will be treated equally. For instance, big screen spectacle like F9 or Jurassic World could possibly stay as a theater exclusive for a longer period, especially if they score robust ticket sales. In contrast, this new model would be beneficial for Universal’s awards contenders, which typically have limited box office prospects anyway. Cinephiles would enjoy having the ability to stream an Oscar favorite at home instead of waiting to see if it ever plays at a theater in their area. It’ll be interesting to see how Universal goes about implementing this strategy moving forward.
Regardless, this is a monumental development for the industry and further illustration of how Hollywood is forever changed by the coronavirus pandemic. This is a smart move by Universal, particularly since people may be leery of going back to the theater in the immediate aftermath of the COVID-19 outbreak. They want to get their moves to as many viewers as possible, and this perhaps the best way to go about that. In all likelihood, other studios will be watching Universal’s plan closely to see if it’s feasible for them to pursue. If the likes of Sony, Warner Bros., and Disney decide to move forward with a similar setup, the moviegoing landscape will be very different.
