Some Universal movies to hit iTunes 17 days after debut at AMC theaters
A new deal between Universal Pictures and AMC Entertainment Holdings shortens the theatrical window of movies to 17 days, down from the long-standing 75-day industry standard.
Under the arrangement, Universal movies that make a theatrical debut at AMC theaters will be available through online services like Apple's iTunes just two and a half weeks later, reports The Wall Street Journal. The greatly reduced theatrical window settles a disagreement between the two companies over how long studios can wait before marketing new films on digital platforms, the report said.
Over the past few months, Universal has toyed with the idea of simultaneously releasing movies in theaters and through digital outlets like iTunes. AMC, the world's largest theater chain, opposed the move and in an an open letter to Universal Chairman Donna Langley in April accused the studio of defaulting on previous agreements.
"AMC believes that with this proposed action to go to the home and theatres simultaneously, Universal is breaking the business model and dealings between our two companies," Adam Aron, CEO of AMC Holdings, wrote at the time. "It assumes that we will meekly accept a reshaped view of how studios and exhibitors should interact, with zero concern on Universal's part as to how its actions affect us."
As noted in today's report, however, the ongoing coronavirus pandemic has kept most theaters closed, leaving studios to seek out viable near-term alternatives. Universal in April tested the waters by releasing "Trolls World Tour" as an online rental, skipping a scheduled theatrical bow. The film generated $100 million in its first three weeks of availability, the report said.
Aron in a written statement said AMC "enthusiastically embraces this new industry model," noting that Universal films will be exclusive to theaters for three weekends, a period that typically accounts for a majority of a movie's box-office revenue. Following the shortened window, new releases will be made available on iTunes, Amazon and other outlets including AMC's own AMC Theatres On Demand streaming platform.
If successful, the strategy might be adopted by other film studios and movie theater chains.
Under the arrangement, Universal movies that make a theatrical debut at AMC theaters will be available through online services like Apple's iTunes just two and a half weeks later, reports The Wall Street Journal. The greatly reduced theatrical window settles a disagreement between the two companies over how long studios can wait before marketing new films on digital platforms, the report said.
Over the past few months, Universal has toyed with the idea of simultaneously releasing movies in theaters and through digital outlets like iTunes. AMC, the world's largest theater chain, opposed the move and in an an open letter to Universal Chairman Donna Langley in April accused the studio of defaulting on previous agreements.
"AMC believes that with this proposed action to go to the home and theatres simultaneously, Universal is breaking the business model and dealings between our two companies," Adam Aron, CEO of AMC Holdings, wrote at the time. "It assumes that we will meekly accept a reshaped view of how studios and exhibitors should interact, with zero concern on Universal's part as to how its actions affect us."
As noted in today's report, however, the ongoing coronavirus pandemic has kept most theaters closed, leaving studios to seek out viable near-term alternatives. Universal in April tested the waters by releasing "Trolls World Tour" as an online rental, skipping a scheduled theatrical bow. The film generated $100 million in its first three weeks of availability, the report said.
Aron in a written statement said AMC "enthusiastically embraces this new industry model," noting that Universal films will be exclusive to theaters for three weekends, a period that typically accounts for a majority of a movie's box-office revenue. Following the shortened window, new releases will be made available on iTunes, Amazon and other outlets including AMC's own AMC Theatres On Demand streaming platform.
If successful, the strategy might be adopted by other film studios and movie theater chains.
Comments
And unless AMC is getting a piece of the streaming revenue, I don't understand what's in it for them. Why did they cave?
The end of theaters will mean the end of big budget films. Some people might see that as a good thing, but eventually, everything is mostly going to look like "straight to DVD" films. Also, you can't tell me that watching a film on a device is anywhere near the quality of watching in a decent theater. Only a very small percentage of people have even a sound bar, never mind a full fledged audio system and even a 65" TV is not the same experience as seeing a film in a good theater (IMO) and only a very small percentage of people watch on a calibrated device.
True, but that market is in severe decline and UHD Blu-ray has never done well. In a typical week (in North America), 4K commands about a 10% share of the top 20 titles and 4% of the top 50. And overall, the Blu-ray business has declined from $2.3 billion (at list prices) in 2013 to $1.6 billion in 2019 and 2020 is running about 22% behind 2019.
I'm not sure the average person can detect the difference between streaming and Blu-ray, especially since most don't have decent audio and they watch on uncalibrated TV's. And unlimited streaming for a relatively low monthly fee is a big draw. I own a few hundred Blu-ray titles, but it's been a long time since I've bought anything new because there's nothing I don't already have that I think I'm going to want to see more than once and if I'm not going to watch it more than once, I don't think it's worth owning. I barely ever watch the titles I do own.
Please. The average price of a movie ticket in the U.S. is about $9.60. It is far higher in big cities, but before the pandemic, AMC, the largest chain, had a membership program where for about $22 a month (depending upon the city), one could see up to three films a week, including IMAX and Dolby. That was a great deal. The other chains had similar programs.
I suppose you'll argue that the snacks are too expensive. Yes, they are. I've never understood why Americans can't go 2 1/2 hours without eating absolute crap. I never buy any snacks when I go to a movie. I eat before or after at a decent place.
In our area (in U.K.) Cineworld have a monopoly by owning both local cinemas. As such they want £10.60 a ticket.
To take the family out costs £40 just for the 4 tickets, add on the popcorn & a drink (yes, I know it’s optional, but it’s also kind of part of the experience) and you’re looking at £70+ ($90) to take the family out to see the latest Disney, or whatever. Absolute rip off.
I’m perfectly happy to see cinemas close and to pay just £15 to stream the latest release at home. Sure, my 4K Panasonic 55” TV & SoundBar won’t reproduce the cinema experience, but at £55 less for the family to watch a film and eat popcorn it’s certainly good enough!