Earlier this year, Universal made a landmark deal with AMC Theatres, allowing for some of the films from Universal to arrive on PVOD 17 days (or three weekends) after they’re released. Many saw this as a major loss for theatrical business, as it means the world’s largest theater chain would be allowing for one of the biggest studios to cut into ticket sales after only 17 days. Well, it appears that AMC isn’t alone anymore, as Cinemark has struck a deal with Universal that actually is even more impactful.
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According to THR, Cinemark has a deal with Universal that allows for the studio’s films to arrive on PVOD much earlier than previously available. Under the new rules, if a film opens to under $50 million during its first weekend, it can go to PVOD after only 17 days, similar to AMC’s agreement. However, this goes one step further. If the film opens to more than $50 million (as would be the case with a major blockbuster or tentpole feature, Cinemark will allow the film to go to PVOD only 31 days after its release. That means, no matter what, Universal films are arriving on PVOD much sooner than previously allowed.
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“We believe a more dynamic theatrical window, whereby movie theaters continue to provide an event-sized launching platform for films that maximize box office and bolsters the success of subsequent distribution channels, is in the shared best interests of studios, exhibitors and, most importantly, moviegoers,” Cinemark CEO Mark Zoradi said.
Universal Filmed Entertainment Group chairman Donna Langley added, “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.”
This is a huge deal for two reasons. The most obvious reason is that it is yet another example of the window of theatrical exclusivity shrinking since the pandemic began earlier this year. And two, this means that two of the three largest cinema chains are on board with Universal’s plan to release films on PVOD early. The only holdout being Regal Cinemas, but those locations are already closed until 2021 (likely), so there’s no immediate need for a deal just yet. And now, with the two biggest competitors signing agreements, Regal doesn’t hold much leverage in the discussion.
Think about what could happen next year. Films like “F9,” “Minions 2,” and “Halloween Kills” could be available on PVOD only a month after their theatrical release. And the rest of Universal’s lineup could arrive even sooner than that. This is a huge change in how theaters and studios do business.