They maintain that movies make most of their box office revenues in the first few weeks of release and waiting three months to debut films on-demand and across other platforms requires them to spend more money to advertise them and re-familiarize the public.On Tuesday, both sides made nice, with Universal praising the viability of the big screen and AMC hailing the decision as a sign of its willingness to innovate.For his part, Aron said, “Focusing on the long-term health of our industry, we would note that just as restaurants have thrived even though every home has a kitchen, AMC is highly confident that moviegoers will come to our theaters in huge numbers in a post-pandemic world.
AMC Delays U.S. Theater Openings Until Mid-to-Late August The last plan was for a July 30 opening date, which already represented a delay from the previous plan of July 15. “The theatrical experience continues to be the cornerstone of our business,” said Donna Langley, chairman of Universal Filmed Entertainment Group. However, in a statement, AMC’s CEO Adam Aron said the company will “share in these new revenue streams,” which means that it will get a cut of any money made on these digital rentals. But studios have griped that those terms are onerous. “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.”A Variety and iHeartRadio PodcastEven though Universal, under this new agreement, could theoretically debut the next “Jurassic World” or “Fast & Furious” installments on premium on-demand with 17 days of their debut, they will likely have longer exclusive runs in cinemas. Universal only has the ability to put its movies on premium on-demand, meaning the rentals that go for roughly $20 a pop. Even before the pandemic caused its locations to close for four months, the company was heavily indebted due to expensive refurbishments of its venues and deals to acquire rivals like Odeon and Carmike Cinemas. On its upcoming slate, Universal also has “Minions: The Rise of Gru,” “Halloween Kills” with Jamie Lee Curtis and spy thriller “355” with Jessica Chastain, Penélope Cruz and Lupita Nyong’o.The pact, sure to send shockwaves throughout the exhibition industry, has the potential to reshape the ways that movies are marketed and distributed. With studios delaying film release dates, AMC Theatres has announced they will once again push back their reopening to mid-to-late August, according to Deadline.. According to a press release, however, “the two companies will begin discussions surrounding international distribution agreements in the countries in Europe and the Middle East served by AMC… Universal has cleared its schedule until October, when it will release “Candyman,” a remake of the horror classic, directed by Nia DaCosta and co-written and produced by Jordan Peele. Rival studios are likely to begin pushing for 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.For years, Universal and other studios have pushed to shrink the window, industry parlance for the period of time between a film’s theatrical release and its debut on home entertainment. It cannot sell films or rent them for lower on-demand fees, in the $3 to $6 range, until three months after they debut in cinemas.As cinemas nationwide have struggled to reopen, AMC has been saddled with concerns of its liquidity. But if smaller movies perform better than expected on the big screen, Universal can wait to put it digital rental services. Instead, the studio has the option to capitalize on its new freedom with mid-budget fare, comedies, and horror movies that might not have as robust runs in cinemas. Universal Pictures and AMC Theatres have put aside a bitter feud and signed a multi-year agreement that will allow the studio’s films to premiere on premium video on …