While we don't normally report much of the business side of the movie business, some stories are big enough that they have potential to shake up the industry for years to come. You might recall that, back in April, Universal's decision to release Trolls: World Tour on premium Video On Demand led to Odeon cinemas owner AMC to declare it would no longer carry the studio's films in its various chains. Things have definitely moved on to a more positive note with a deal between the companies that sees them sharing access to big movies.
The move allows Universal to release its films on Premium Video On Demand (that's the around $20 per rental deal) within three weeks of their debut in cinemas. The companies will share in the proceeds from the rentals the same way they split profits from distribution. And, according to Variety's report on the matter, the studio is aiming to stick with a more traditional three-month window for bigger movies such as No Time To Die and Jurassic World: Dominion.
"The theatrical experience continues to be the cornerstone of our business," says Universal's Donna Langley. "The partnership we’ve forged with AMC is driven by our collective desire to ensure a thriving future for the film distribution ecosystem and to meet consumer demand with flexibility and optionality."
"Focusing on the long-term health of our industry, we would note that just as restaurants have thrived even though every home has a kitchen, AMC is highly confident that moviegoers will come to our theatres in huge numbers in a post-pandemic world," adds AMC boss Adam Aron.
Still: can open, worms everywhere. You know other studios such as Sony and Warner Bros. will be looking to make their own deals, and there are already talks to open this agreement out to where AMC has cinemas around the world. The pandemic has affected many corners of the film industry, and this would mark a paradigm shift in how movies are released. Stay tuned...