AMC Theatres Decide Not To Screen Universal Movies Anymore Following ‘Trolls World Tour’ VOD Release
In an open letter to Universal Pictures Chairman Donna Langley, AMC Theatres chief executive Adam Aron announced that the movie theater chain will not be screening Universal films due to the announcement made by NBCUniversal CEO Jeff Shell that suggests the studio will be releasing more films day-and-date both theatrically, as well as on video-on-demand.
Admitting that the decision is quite disappointing, Aron noted that Jeff’s comments as the studio's unilateral actions and intentions have left them with no choice but to effectively immediately stop playing any Universal movies in any of their theatres in the United States, Middle East or Europe. This policy that comprises any and all Universal movies went into effect on Apr. 29. Aron clarified it is not a meaningless or thoughtless threat.
She made the comments in Apr. 28 Wall Street Journal story that revealed the animated film Trolls World Tour garnered a staggering $95 million in digital rentals in just 19 days after its release. The film was originally slated to hit the theaters but was moved to day-and-date with its digital release set for Mar. as several theaters were compelled to shut down amid the coronavirus pandemic.
Noting that Trolls World Tour has not just met, but exceeded their expectations, Shell said the animation film has shown PVOD can work successfully as well. Moreover, he added that the studio plans to release movies on both formats as soon as theaters reopen.
The possibility of Universal abandoning the most long-held theatrical window triggered reactions from the National Association of Theater Owners, who attributed the changes in moviegoing habits to the coronavirus lockdown for the skyrocketing success of Trolls World Tour, rather than any other sort of changes in customer habits.
Addressing these reports, NATO president and CEO John Fithian said Universal has no reason to cash in on a pandemic and leverage it as a springboard to neglect true theatrical releases. Fithian added that theaters offer an unparalleled, immersive movie-watching experience that most VOD viewers of Trolls World Tour would have chosen, had the world not been secluded at home, desperately looking forward to watching something new with their families.
Fithian said once theaters reopen, studios will start benefiting from the global theatrical box office, in addition to the traditional home release. With AMC terminating its relationship with the studio, it will no longer screen blockbusters that rely on their theatrical releases that make back their huge production and marketing costs. For instance, the release of F9 (Fast & Furious) was pushed back to May 2021 due to the pandemic.