AMC Theatres, one of the largest cinema chains in the US, has announced that it will no longer play any movies from Universal Studios. The decision was made in response to a dispute that arose after the release of the animated film “Trolls World Tour” during the COVID-19 lockdown. Universal decided to release the movie simultaneously in cinemas and on digital platforms, which led to a successful release and prompted the studio to consider other similar strategies in the future. AMC sees this move as a threat to their exclusivity and has vowed to not show any Universal movies in retaliation..
Variety reports that AMC Theatre has decided to hit Universal Pictures where it hurts, by refusing to screen the movie studio’s films after NBCUniversal CEO Jeff Shell’s promised to open titles on PVOD (premium video on demand) and in theaters at the same time. Typically, movie studios wait 90 days after the movie’s debut in theatres before releasing the film digitally.
Due to the raging pandemic we have going on right now, Universal decided to release Trolls Worlds Tour via VOD on April 10 this year. What they didn’t expect was what a humongous success it would be, making US$100 million in premium VOD rentals in the first three weeks of play in North America.
“The results for Trolls World Tour have exceeded our expectations and demonstrated the viability of PVOD,” Shell told the Wall Street Journal. “As soon as theaters reopen, we expect to release movies on both formats.”
AMC Theaters chairman-CEO Adam Aron is very against this infringing of the 90 day policy, and feels that Shell’s decisions have left them with little choice in the matter. Aron explained that this decision wasn’t made in spite, but to discourage any movie maker from abandoning the currently established 90-day window.
Universal doesn’t appear to be backtracking on its decision, stating that the studio still believes in the theatrical experience and will continue to release their movies in such a way, turning to PVOD if such a distribution makes sense.
NATO (National Association of Theatre Owners) also weighed in, citing this onslaught of covid-19 as a unique situation, leaving audiences with not much choice but to turn to PVOD. But once the pandemic is over, and people are once again presented with options, CEO John Fithian is confident they will return to the cinemas once more.
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AMC Theatre has announced that it will not screen Universal Pictures’ films in response to the studio’s decision to release movies on PVOD and in theaters simultaneously. Typically, films have a 90-day window in theaters before being released digitally. However, Universal saw great success with the release of “Trolls World Tour” on VOD, making $100 million in premium rentals within three weeks. AMC’s chairman-CEO, Adam Aron, opposes this move and believes it undermines the established release window. Universal states that it still values the theatrical experience but may turn to PVOD when appropriate. NATO also believes audiences will return to cinemas once the pandemic is over.
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