News: Regal Entertainment Joins AMC in Refusing To Play Universal Movies After Trolls World Tour Statement

Cineworld, the owner of Regal Entertainment, the second largest theater chain in the United States, has joined AMC's previous statement, refusing to play Universal Pictures films in the wake of NBC Universal CEO Jeff Shell's statement alluding to future releases being both theatrical and day and date home rental.  Cineworld said that "Universal's move is completely inappropriate and has nothign to do with good faith business practice, partnership, and transparency."

Amid theatrical closures and a global pandemic, Trolls World Tour released direct to video rental with a $19.99 fee for a 48-hour rental.  Earlier this week, NBC Universal announced that Trolls World Tour earned $95 million in three weeks of premium video on demand (PVOD).  Cineworld made clear that its ban is not for all Universal movies, simply those that do not respect the 90 day window between theatrical and digital releases.  "Today we make it clear again that we will not be showing movies that fail to respect the windows as it does not make any economic sense for us," Cineworld said.

As we said earlier today, it will already be difficult to convince consumers to come back to the theaters when they do open.  Having new entertainment options exclusively in cinema is one way to entice moviegoers back to the physical theaters.  It is not surprising that both AMC and Cineworld would be protecting their business model.  We will just have to see what happens between them, and with other studios that are experimenting with direct to home rental models, such as Disney's Artemis Fowl and Warner Bros. Scoob!  

News: AMC and Universal in War of Words Over Theatrical and Home Releases

Earlier this week, NBC Universal CEO Jeff Shell made statements in the Wall Street Journal regarding the success of Trolls World Tour's direct to home theater rental experiment.  The statements said that the movie earned $95 million and that NBC Universal: “As soon as theaters reopen, we expect to release movies on both formats,” which alludes to the idea that it would be releasing new movies in home streaming format day and date with the theatrical release.

In response to this, Adam Aron, head of AMC, sent a letter to Universal Studios Chairman Donna Langley with some firm language.  In the letter, Aron recognizes that Trolls World Tour's release was a situational occurrence due to the worldwide pandemic and closing of theaters.  However, he drew a line in the sand with respect to future direct to home theatrical releases once theaters reopen.  He stated that: “Going forward, AMC will not license any Universal movies in any of our 1,000 theatres globally on these terms.” That includes AMC sites in the U.S., Europe and the Middle East.  Aron's statements were directed at Universal, but he made sure to note that it would be extended to any movie maker that abandons the theatrical first model.

With upcoming direct to home releases like Disney's Artemis Fowl and Warner Bros. Scoob! testing the direct to home waters, there might be more and more of these types of statements released.  Aron's comments are not surprising, given that it will already be difficult to get consumers back into theaters once life returns to normal.  AMC will need new movies to drive consumers back to cinema.  With social distancing measure likely to reduce the number of seats in theaters and add costs for cleaning, AMC is looking to protect its business model.  Only time will tell what happens in this feud, and if other movie studios join in, but it will be interesting to watch!

News: Universal Theatrical Movies to be Available to Stream on March 20

As everyone adjusts to the new Quarantine world, Universal Pictures has made the stunning move of offering some of their theatrical movies available to stream as soon as this Friday, March 20, including The Invisible Man, The Hunt, and Focus Feature's Emma.  Today, NBCUniversal announced that movies under the Universal Pictures banner will be available on-demand on the date of the theatrical release, including the upcoming Trolls: World Tour on April 10.

This should not change the delays of some prominent films such as No Time to Die, A Quiet Place 2, Mulan, and Universal's own Fast 9, but it should provide another avenue for those looking to avoid theaters but still wanting to see the newest movies.  This should also provide a boost for the box office, which saw its worst weekend since 1995 as consumers stayed home rather than head to the theaters.

Although details are still being worked out, it looks like these new theatrical movies will be $20 for a 48-hour rental period, which is about in line with how film rentals work on streaming services.  The first movies to be available will be The Invisible Man, the Hunt, and Emma on March 20.

"Given the rapidly evolving and unprecedented changes to consumers’ daily lives during this difficult time, the company felt that now was the right time to provide this option in the home as well as in theaters. NBCUniversal will continue to evaluate the environment as conditions evolve and will determine the best distribution strategy in each market when the current unique situation changes," read the company's release.

“Universal Pictures has a broad and diverse range of movies with 2020 being no exception. Rather than delaying these films or releasing them into a challenged distribution landscape, we wanted to provide an option for people to view these titles in the home that is both accessible and affordable,” said NBCUniversal CEO Jeff Shell in the same statement. “We hope and believe that people will still go to the movies in theaters where available, but we understand that for people in different areas of the world that is increasingly becoming less possible.”

Expect more details as this evolves!