Universal, AMC reach deal to put new movies in your living room after just 17 days
S E E D E D C O N T E N T
Movie studio Universal Pictures and top theater chain AMC Entertainment have reached an agreement that would allow new films to head straight into your living room after just three weekends in U.S. cinemas, a move that could have major implications for Hollywood's business model and the future of moviegoing.
The deal, announced in a news release Tuesday afternoon, hands AMC the right to screen films from Universal and its art-house division, Focus Features, for 17 days in the U.S. — a dramatic departure from the traditional "theatrical window" of about 90 days. (Universal Pictures is a unit of NBCUniversal, the parent company of NBC News.)
After the 17-day window closes, Universal has the option to shift movies from theaters to "premium video-on-demand" services — including AMC Theatres On Demand, an iTunes-style platform that lets customers rent and buy movies. AMC, the largest theater chain in the world, will get a slice of the revenue that Universal generates during the first weeks a film is available in the home.
"The theatrical experience continues to be the cornerstone of our business. 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," Donna Langley, chair of the Universal Filmed Entertainment Group, said in a statement accompanying the news release.
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Universal is the studio behind lucrative, globally popular franchises such as "Jurassic World," "Fast & Furious" and "Despicable Me." It was not immediately clear whether competitors of similar size, specifically Walt Disney Studios and Warner Bros., would forge similar pacts with AMC and other leading theater chains.
The two companies did not announce an official start date for the deal, as the vast majority of movie theaters across the U.S. are still closed because of the COVID-19 outbreak.
Universal has moved aggressively into at-home viewing in recent months, releasing the children's film "Trolls World Tour" and the Judd Apatow dramedy "The King of Staten Island" directly to video-on-demand platforms and charging $20 for 48-hour rental periods.
Universal and AMC clashed three months ago after new NBCUniversal CEO Jeff Shell suggested that the studio would begin releasing movies in theaters and via on-demand platforms simultaneously, the strategy it used for the debut of "Trolls World Tour."
In response, AMC CEO Adam Aron said the company would no longer screen Universal movies at its more than 1,000 locations worldwide. The leaders of America's largest theater chains, which also include Regal Cinemas and Cinemark Theatres, have long been concerned that shrinking the theatrical window would deter consumers from buying tickets to popular new releases.
AMC appears to have softened its position in recent months, however, and Aron hailed the Universal agreement in a statement.
"AMC enthusiastically embraces this new industry model both because we are participating in the entirety of the economics of the new structure, and because premium video on demand creates the added potential for increased movie studio profitability, which should in turn lead to the green-lighting of more theatrical movies," he said.
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I'll rent a movie for $5.99 if I can sit in my living room, pause it for bathroom and smoke breaks. Way better than spending 50 bucks at the movie theater
It's far more comfortable when you can have a beer, a smoke, and pause to pee isn't it?
Absolutely! And I have a popcorn maker!
Me too!
We're talking more like $20 a pop on platforms like iTunes and Amazon.
Ohhhhh....!
You're right! This seed is about new releases.
Doesn't matter, I can wait 3 months before the new releases are available on Amazon for $5.99
If it is a big release, $20 is fair and in line with theater pricing.
Will they charge extra for sticky floors and piping in annoying people talking in the background?
It is, but will enough people actually pay for it is the question. Trolls Wold Tour made something like $100K at $19.99 a view. So maybe?
Good questions, but theaters are going to have to do something. Due to COVID, the world is changing, theaters are going to have to adjust their business model or start failing.
Screw the theaters they've been screwing us for years. I haven't gone in 30 years and I probably will never go again. I can't see spending that much on tickets and then getting robbed for snacks. Besides I can't get comfortable in an upholstered seat that thousands of other people have sat on, it just seems nasty. There's a Drive-in in my town that I hear is doing real well this season and they let you BBQ if you want so it keeps it cheap for families. I think it's like 25 bucks a car but you bring your own drinks and cook some burgers and dogs on the grill.
I partially agree with you. However there are some movies (not a lot) that require the technology offered at movie theaters to fully immerse yourself into for the 1st watching. While I personally don't like 3d movies, Avatar is a good example of a movie experience that is enhanced due to being able to see in a properly equipped theater. 1st Jurassic Park would be another.
I think Regal Theaters has applied for debt restructuring. There may have been some others including several local theaters. The city next door used to do "movies in the park" and have changed that this year to a pop up drive in at the convention center parking lot. Unfortunately there were no movies listed that I'm interested in seeing. As mentioned by others - drive-ins are doing well.
And always eager to find a way to make a buck....:
Walmart is transforming 160 of its store parking lots into contact-free drive-in movie theaters where customers can safely gather to watch movies programmed by the Tribeca Drive-in team.
Unlimited popcorn popped the way I like it...
I'm in.
No more missing something important when that swimming-pool sized soda hits my kidneys.
This deal doesn't make it certain any particular title WILL hit PVOD services. It might depend on how many people actually pony up the $20 asking price vs wait 3 months and get the BluRay for the same amount.
My family will. They're crazy about going to the movies. They go at least once a week. They'll be the ones to shell out 20 bucks for a 2 day rental on Amazon
During the summer blockbuster season we normally go at least 2 or 3 times a month. I really miss having brunch and seeing a matinee. I do have a nice (not spectacular) home theater system. I just purchased the Jaws 45th Anniversary Limited Edition - 4K Ultra HD Blu-Ray. I don't know if I'd pay $20 for a one time move at home... maybe.
I stopped going to movies when my bladder reached its 50th birthday. I can't sit thru an entire movie w/o a pee break and I'm sure nobody is going to hit pause so I don't miss anything.
And...I'm just so over sitting in a crowded theater, paying way too much money for something I can see on HBO in about 6 months, and over priced snack...and I can never get unsweet tea! I have to drink a soda and I don't like soda.
Rant over. During the summer I like to be on my deck drinking beer.
Well I don't blame you. I'm a movie nerd, but I these 3 hour + movies don't go well with that gallon bucket of soda... Don't tell anyone but sometimes we sneak in our snacks and drinks. I still often get a bucket of seriously overpriced popcorn. LOL!
During first run movies the concessions are how the theater makes it's money while almost all the ticket prices go to the production companies. As weeks go by more and more of the ticket price gets split to the theater, but then also less and less people see the movie.
That is when you get one of those portable outdoor movie projectors.
That's not a bad idea.
They are not that expensive really. Not sure about picture quality.
This one works from a smart phone...
We have a couple of them, but they don't get first run large budget movies. Our local theater did get Jay and Silent Bob Strike Back a week before the chain theater got it. That was fun!
I like that. We could invite the family over for movie night
I am surprised that with all this, the drive in has not made a comeback.
I know! Mr Giggles has this vision of a mutiplex drive-in movie theater where you can charge by the carload.
We just need about a 20M dollar investment
There aren't many left. There have a been several articles about drive-ins and pop-up drive-ins. This one was interesting...