“It is disappointing to us, but Jeff’s comments concerning Universal’s unilateral actions and goals have left us without a choice,” AMC stated in a statement. “Thus, effectively instantly AMC will no longer perform any Universal films in almost any of our theatres in the United States, Europe or the Middle East… [This policy] is not some hollow or ill-considered threat.”
The ban, which Regal Theaters parent company Cineworld united on Wednesday, comes in advance of high-profile Universal blockbusters like Fast & Furious'”F9″ and Daniel Craig’s closing James Bond setup”No Time to Die.”
Universal reacted in kind, saying that”we totally feel from the theatrical adventure and have made no announcement to the contrary. As we mentioned earlier, moving forward, we hope to release future movies directly to theaters, as well as around PVOD when that distribution socket makes sense.”
The PVOD version can frequently be quite lucrative for studios. By way of instance, while box office grosses are split evenly between production homes and theater chains, studios maintain roughly 80% of digital leasing prices.
‘I certainly wouldn’t want to be AMC’
“I am not on both sides, but I certainly would not need to be AMC inside this fight. I’m not sure they have the correct cards in the end,” Marcum LLP CEO Jeffrey Weiner, that served as an executive producer on the”Borne Supremacy” series, informed Yahoo Finance.
“Film studios have several channels of distribution — theatres being one of them — but theatres aren’t likely to return some time soon,” he explained. “And if they do it’s going to be at low density that automatically shrinks box office bucks.”
Weiner added:”Studios have a whole lot more choices [to] find alternative sources of distribution and make profits.”
To conserve cash during that time, AMC has furloughed all its corporate workers including CEO Adam Aron. And although theaters are hoping to salvage the summer blockbuster season by releasing both Disney’s”Mulan” and Warner Brother’s”Tenet” in July, there is no telling when customers will feel comfortable .
“The economics will have to be reset for a period of time at least, but do theatre chains have the balance sheets to weather this sort of storm? The whole business is really in for a tough time until people are not afraid anymore.”
The achievement of this second’Trolls’ movie”is due to quite a usual scenario that sees the competitive version completely shifted right now,” Comscore Senior Media Analyst Paul Dergarabedian told Yahoo Finance. “However, when theaters come back we are going to return to a more ordinary revenue pattern for large screen and small screen companies.”