Universal and AMC Theatres forge historic deal allowing theatrical releases to debut on premium VOD early
and signed a multi-year agreement that will allow the studio’s films to premiere on premium video on-demand within three weeks of their theatrical debuts.
Even though Universal, under this new agreement, could theoretically debut the next “Jurassic World” or “Fast & Furious” installments on premium on-demand with 17 days of their debut, they will likely have longer exclusive runs in cinemas. Instead, the studio has the option to capitalize on its new freedom with mid-budget fare, comedies, and horror movies that might not have as robust runs in cinemas.
“The theatrical experience continues to be the cornerstone of our business,” said Donna Langley, chairman of Universal Filmed Entertainment Group. “The partnership we’ve forged 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 optionality.”
However, COVID-19 has altered the power dynamics in the relationship between studios and theaters. The bulk of cinemas in the United States remain closed due to the virus, andhave been delayed again and again as cases surge in the South and West Coast. Theaters don’t have the leverage they once did and are looking for ways to make money at a time when its not clear if customers feel safe going to cinemas.
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