AMC Theatres appears to have declared war on Universal Pictures.
The recent success of “Trolls World Tour” on premium VOD (PVOD) led to NBCUniversal CEO Jeff Shell issuing a statement to the Wall Street Journal this week saying the film “exceeded our expectations and demonstrated the viability of PVOD. As soon as theaters reopen, we expect to release movies on both formats.”
In other words it sounds as if they intend on going day-and-date with their releases, much like indie titles from boutique distributors such as IFC Releasing and Magnolia Pictures do now, rather than obeying the three-month exclusivity window to release films digitally.
AMC Theaters chairman-CEO Adam Aron has now hit back with a letter to Universal Filmed Entertainment Group chairman Donna Langley, saying the change in release policy is unacceptable. As a result, they have issued a straight up ban of Universal’s films playing in any of their cinemas around the world:
“It is disappointing to us, but Jeff’s comments as to Universal’s unilateral actions and intentions have left us with no choice. 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.
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. 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.”
The stern letter comes as AMC, which owns around 1,000 theaters globally, is battling billions in debt. Earlier this month speculation was rife the chain was on the brink of filing for bankruptcy, but they unveiled plans the other week to raise $500 million in new debt to improve their balance sheet. The new cash flow should be enough to allow them to survive to the Fall by which time films should be back in cinemas again.
But the question is can they survive without Universal? The studio has “F9: The Fast Saga,” “Jurassic World: Dominion,” and “Minions: The Rise of Gru” coming next summer, “Halloween Kills” and “The Croods 2” this Fall (and “No Time To Die” internationally) and other films like “The Boss Baby 2” and “Candyman” on the way.
This is a long way from over.
Source: Variety
