News19 Nov 2020 13:59
Following AMC Deal, Universal Is Partnering With Another Major Theater Chain
https://www.cinemablend.com/news/2558831/following-amc-deal-universal-is-partnering-with-another-major-theater-chain
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Earlier this year, shortly after the COVID-19 pandemic started wreaking havoc on the film industry, Universal Pictures got into a bit of a kerfuffle with the AMC theater chain over the studio’s decision to release Trolls World Tour in theaters and on VOD the same day, an approach that was considered for more releases. But by the following July, Universal and AMC had buried the proverbial hatchet by striking a special theatrical window deal, and now Universal has established a separate deal with the Cinemark chain too.
For those unfamiliar with what Universal and AMC hashed out, movies from the former studio only have to play for 17 days in the latter’s theaters, rather than the traditional 90 days. After that, Universal can provide said movies, from both the main Universal branch and Focus Features, as PVOD rentals, and AMC would receive a share of that revenue. Universal’s arrangement with Cinemark works similarly, albeit a bit more focused. Cinemark will play Universal and Focus titles opening upwards of $50 million at the domestic box office for 31 days, while movies opening under $50 million only play for 17 days.
Once those theatrical windows have run through, then Cinemark gets a cut of Universal’s PVOD revenue stream from those movies. According to Deadline, about 10% of PVOD revenues on a title have been set aside from exhibition, and of that share, AMC and Cinemark respectively receive 15-17%, which makes up about 1-2% of the entire PVOD “pot.” There’s also nothing to stop Universal from continuing to play its movies at AMC and Cinemark locations even after they become PVOD rentals.
So while the particulars of Universal/Cinemark deal are a bit different compared to what Universal worked out with AMC, that’s two theater chains where the studio now doesn’t need to show its movies for as long as is typically required. Could Regal Cinemas be next? That theater chain issued a strongly-worded statement against Universal Pictures for how it chose to release Trolls World Tour, but that was over half a year ago, so maybe Regal is now open to getting in on that PVOD action.
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