In exchange, theater chains get a cut of the VOD revenue and it’s all very complicated.
Cinemark’s addendum is that if a movie opens to more than $50M, theatrical exclusivity gets expanded to five weekends. That’s a massive drop from the previous 90-day standard.
The new deal with Cinemark elaborates on AMC’s, which allows Universal to put new movies on PVOD after their third weekend of theatrical release. Now, thanks to the pervasive efforts of the government to ensure the pandemic isn’t taken seriously and the crafty culmination of a long-time business strategy, the future of theatrical film exhibition has the potential to change dramatically.Ī recent deal between Universal and Cinemark regarding shortened theatrical windows is the second domino to fall, with the studio nailing down a similar deal with AMC over the summer. economy, with in-person moviegoing one of its biggest victims. The flexibility to ensure that blockbusters would have a longer exclusive run in theaters was key for the company.COVID-19 has wreaked havoc on much of the U.S. "With COVID and the reduced amount of content, it just made sense to accelerate this." "We have been talking to multiple studios about doing a version of dynamic windowing for quite some time, even going back pre-COVID," said Cinemark CEO Mark Zoradi. "Universal's century-long partnership with exhibition is rooted in the theatrical experience, and we are more committed than ever for audiences to experience our movies on the big screen," said Donna Langley, the chairman of Universal Filmed Entertainment Group, in a statement.Īlthough specific terms were not disclosed for either, there is an element of profit-sharing in the premium video on demand rentals between the studio and the exhibitors. The Hollywood studio behind the "Fast & Furious" and "Jurassic World" franchises is the only major player to reach this kind of agreement with major exhibitors, who have until now clung to the standard 90-day theatrical window, but it is likely not the last.Įarlier this summer, Universal made a similar agreement with the nation's largest chain, AMC Theaters.
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