One group that seemingly comes out badly from the new deal struck between Universal Pictures and AMC Theaters are independent theater owners.
The deal shortens the amount of time that new movies from Universal have to play exclusively in AMC Cinemas before customers can rent them via PVOD – shrinking the long standing ‘exclusivity window’ from 90 to just 17 days.
Other exhibitors like Regal have stated their unhappiness with the agreement, indeed AMC controls 8,200 of the 40,000 screens in the U.S. which is not enough on its own to justify a major budgeted film being blocked should other cinema chains opt not to play Universal titles in protest.
Independently owned cinemas are the wild card here. They remain vital to filmgoing, especially in small towns, and recently they’ve expressed their dissatisfaction with the announcement of this deal and with AMC’s CEO Adam Aron. One source tells Variety: “We’re all resilient and will try to survive, but it’s difficult. If your local theater in a small town or in New York City closes, blame Adam Aron. The responsibility is going to fall squarely on his shoulders.”
According to the trade, some theater owners have conceded that dramatic change is sometimes necessary to push an ageing industry forward. While the domestic box office generated over $11 billion in 2019, there’s an ever increasing gap between hits and misses suggesting audiences think some films simply don’t justify the time and cost to go to a cinema anymore.
One owner concedes they can’t afford to boycott a studio in protest: “I may have to play some Universal movies, I’ve got to pay the bills too. But I’m going to try to avoid them if I can. The business decision isn’t a matter of principle of me taking a stand. It’s not as profitable to go with that picture if it’s off the break.”
Others have adapted. One who routinely brings classics back to the big screen and frequently plays titles after they are put on digital rental services says we “need a revolution”. They reportedly think the new deal will give studios freedom to put more movies on the big screen with less of a risk, in turn decreasing the number of films that are sent straight to streaming.
For now, no other exhibitors have signed similar deals with either Universal or another studio.
