Cinema attendance has declined year-on-year. The future of cinema as we know it is uncertain after this pandemic, says Bob Cooney. Fewer people might go to see a film at the cinema if they can rent it more cheaply at home, especially if there are lingering concerns about safety in a post-COVID-19 world. On-demand releases will occur “when that distribution outlet makes sense.” An uncertain future for cinemaįrom these comments, it is clear that Aron thinks a theatrical and at-home movie release would seriously damage cinemas. The company said that it believes in the cinema experience and will distribute future films directly to cinemas. Aron stresses that AMC would be willing to discuss this with Universal to form “different economic models” between the two companies.ĬNN Business reports that Universal disputed this interpretation from Aron. Any company that makes a similar arrangement without renegotiating with AMC will receive a similar treatment. He continues, saying that this statement shows that Universal believes it “can have its cake and eat it too” without thinking about modifying “the current economic arrangements between us.”Īron is clear that this statement from AMC does not just apply to Universal. Aron says that AMC “had our doubts that this was wholly Universal’s motivations” but they accepted the action as “an exception to our longstanding business practices.” Universal Pictures Breaking an established business modelīut by now planning on releasing films at the cinema and at home simultaneously, Aron believes that this is breaking the established business model between the two companies. He explains that when a movie is released ‘Only in Theatres’ “consumers perceive it to be higher quality entertainment.”Īt the time, Universal explained its at-home release of Trolls by saying that cinemas were closed and it had committed to a toy licensing deal. This comment prompted AMC CEO and President, Adam Aron to pen an open letter to the Chairman of Universal Studios, Donna Langley.Īron says that this “radical change by Universal to the business model that currently exists between our two companies represents nothing but downside for us and is categorically unacceptable to AMC Entertainment”. As soon as theatres reopen, we expect to release movies on both formats.” Now, Jeff Shell, CEO of Universal, has said in the Wall Street Journal that “The results for ‘Trolls World Tour’ have exceeded our expectations and demonstrated the viability of PVOD.
Universal released Trolls World Tour on demand on 10 April, the same day it was meant to have its global theatrical release.
AMC Theatres will no longer screen Universal films in any of its theatres after Universal says it will begin releasing movies in cinemas and at home simultaneously.ĭue to the coronavirus pandemic, several movie studios have released upcoming films on demand at home.
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