AMC and Universal Strike a Historic Deal That Will Do This

AMC Theaters and Universal Pictures have come to a historic deal that would shorten the number of days a film needs to run in theaters before going digital.

AMC has agreed to show Universal Pictures films on the big screen once more and grant Universal a smaller theatrical window so it could make its titles available on-demand sooner. Previously, theaters would have the exclusive rights to films for 90 days.

As part of the deal, Universal and Focus Features must play movies in cinemas for at least three weekends, or 17 days, before releasing those films on premium video on-demand platforms.

AMC will also now be sharing in these new revenue streams from premium video on demand.
“AMC will also share in these new revenue streams that will come to the movie ecosystem from premium video on demand,” Adam Aron, CEO of AMC, said in a statement.

“The theatrical experience continues to be the cornerstone of our business,” Donna Langley, chairman of Universal Filmed Entertainment Group, in a statement Tuesday. “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.

Full terms of the deal remain confidential.

“This presents a significant evolution of the exhibitor-studio relationship, but one that seems to acknowledge compromises on both sides in an effort to keep things harmonious,” Shawn Robbins, chief analyst at Boxoffice.com, said. “The ability for a major theater chain to reap some benefits from PVOD releases could offset some of the loss of a long theatrical window, but the expectation here is that Universal still recognizes the importance of those longer runs for films doing well at the box office.”

“If managed smartly, this could be a win-win type of precedent for many players, but it’s something we’ll have to see unfold in the coming years and reassess at a later point in time,” Robbins said.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.