(Photo by Amy Sussman/Getty Images) Comcast’s Universal Pictures has struck a deal with AMC Theatres to allow it to premiere new films over the internet a mere 17 days after their theatrical release.
The deal shortens the 90-day exclusivity window theaters typically enjoy for new movies.
Going forward, Universal Pictures only needs to wait at least three box office weekends before it can begin releasing films as a paid digital download.
The digital releases, however, won’t be cheap.
Under the deal, Universal Pictures must release the film as a “premium video on-demand” (PVOD) offering, meaning you’ll have to pay about $20 to watch it. Still, the arrangement may usher in a new age of at-home movie watching, and prompt other film studios to create similar deals with AMC.
The two companies had been feuding since April, when Universal bypassed AMC and released the kids’ movie Trolls World Tour as a $20 digital rental. The digital release helped Universal Pictures rake in nearly $100 million in just three weeks, a company executive revealed in an interview with The Wall Street Journal.
AMC—which was forced to close its cinemas in the US due to COVID-19—responded by saying it would no longer screen movies from Universal Pictures, claiming Universal was abandoning long-established business practices in the movie industry.
So why the sudden reversal? Well, money talks.
Terms of today's deal were not revealed, but AMC gets a cut of the PVOD revenue Universal Pictures rakes in from the digital releases.
That said, it’s unclear if Universal Pictures will be taking advantage of the deal in the US anytime soon.
In the coming weeks, the two companies are going to kick off discussions for film distribution in Europe and the Middle East.
However, no mention of North America was made.
AMC is planning to reopen its theaters in the US next month, after remaining closed since mid-March.
The company is banking on the upcoming Christopher Nolan film Tenet becoming a major draw when it releases on Sept.
3.
However, the ongoing pandemic has forced Hollywood studios to postpone and delay their upcoming film releases.
As result, it's possible AMC will struggle to survive over the long term.
(Photo by Amy Sussman/Getty Images) Comcast’s Universal Pictures has struck a deal with AMC Theatres to allow it to premiere new films over the internet a mere 17 days after their theatrical release.
The deal shortens the 90-day exclusivity window theaters typically enjoy for new movies.
Going forward, Universal Pictures only needs to wait at least three box office weekends before it can begin releasing films as a paid digital download.
The digital releases, however, won’t be cheap.
Under the deal, Universal Pictures must release the film as a “premium video on-demand” (PVOD) offering, meaning you’ll have to pay about $20 to watch it. Still, the arrangement may usher in a new age of at-home movie watching, and prompt other film studios to create similar deals with AMC.
The two companies had been feuding since April, when Universal bypassed AMC and released the kids’ movie Trolls World Tour as a $20 digital rental. The digital release helped Universal Pictures rake in nearly $100 million in just three weeks, a company executive revealed in an interview with The Wall Street Journal.
AMC—which was forced to close its cinemas in the US due to COVID-19—responded by saying it would no longer screen movies from Universal Pictures, claiming Universal was abandoning long-established business practices in the movie industry.
So why the sudden reversal? Well, money talks.
Terms of today's deal were not revealed, but AMC gets a cut of the PVOD revenue Universal Pictures rakes in from the digital releases.
That said, it’s unclear if Universal Pictures will be taking advantage of the deal in the US anytime soon.
In the coming weeks, the two companies are going to kick off discussions for film distribution in Europe and the Middle East.
However, no mention of North America was made.
AMC is planning to reopen its theaters in the US next month, after remaining closed since mid-March.
The company is banking on the upcoming Christopher Nolan film Tenet becoming a major draw when it releases on Sept.
3.
However, the ongoing pandemic has forced Hollywood studios to postpone and delay their upcoming film releases.
As result, it's possible AMC will struggle to survive over the long term.
