After Universal Pictures announced that it will now release its feature films on VOD on the same day as their theatrical, side-stepping the traditional 90-day digital release window, national theater chain AMC stated they will no longer run any Universal films in the theaters.
Universal’s decision came after the incredible success of “Trolls World Tour,” which skipped a theatrical release in favor of a straight to VOD release due to the COVID-19 pandemic, bringing in an astounding $100 million. “The results for ‘Trolls World Tour’ have exceeded our expectations and demonstrated the viability of PVOD,” said NBC Universal CEO. “As soon as theaters reopen, we expect to release movies on both formats.”
AMC Theaters chairman-CEO Adam Aron responded in a strongly worded letter:
“It is disappointing to us, but Jeff’s comments as to Universal’s unilateral actions and intentions have left us with no choice,” he said. Therefore, effectively immediately AMC will no longer play any Universal movies in any of our theaters in the United States, Europe or the Middle East.
This policy affects any and all Universal movies per se, goes into effect today and as our theaters reopen, and is not some hollow or ill-considered threat. Incidentally, this policy is not aimed solely at Universal out of pique or to be punitive in any way, it also extends to any movie maker who unilaterally abandons current windowing practices absent good faith negotiations between us, so that they as distributor and we as exhibitor both benefit and neither are hurt from such changes,” Aron said. “Currently, with the press comment today, Universal is the only studio contemplating a wholesale change to the status quo. Hence, this immediate communication in response.
Universal’s unilateral pronouncements on this issue are unpalatable to us, as has always been the case, AMC is willing to sit down with Universal to discuss different windows strategies and different economic models between your company and ours,” he said. “However, in the absence of such discussions, and an acceptable conclusion thereto, our decades of incredibly successful business activity together has sadly come to an end.”
Other studios like Warner Bros. and Disney have announced straight to VOD releases for upcoming films as well, but they have made no statements regarding the future of such releases after the pandemic clears. Adding wrinkle to the story is AMC Stubs, AMC’s monthly movie subscription club, which allows user to see three films per week. Subscribers may balk at a plan that does not include any films from Universal.