AMC Theatres and Universal Forge a Fresh Agreement on Theatrical to VOD Window –

AMC Theatres and Universal have decided to bury the hatchet and strike a new deal regarding the theatrical to VOD (video on-demand) window. They have signed a multi-year agreement that will allow the studio’s films to premiere on premium VOD within three weeks of their theatrical debuts. This pact is a groundbreaking move, and completely changes the ways movies are marketed and distributed. The original window was three months.

As some of you will recall, this all began after the success of Trolls World Tour, when Universal decided it might want to have its films have a similar theatrical and VOD release, causing AMC to release a statement declaring that all Universal movies will be banned from their theatres. It’s good to see the two reach a middle ground, one that acknowledges that the way audiences consume film is changing.

Other movie studios will surely begin to push exhibitors to grant them more flexibility when it comes to determining when and how their theatrical releases can make their way onto home entertainment platforms. In a statement, AMC’s CEO Adam Aron said the company will “share in these new revenue streams”, which means that AMC will get a cut of any money made on these digital rentals. Universal can only put its movies on premium on-demand, meaning the rentals will cost about twenty US dollars per film. The movie studio cannot sell films or rent them for lower on-demand fees until three months after these movies have made their cinema debut.