Business AMC Cinemas bans Universal Films after comments on streaming - Major business has a tardfit.

https://www.bbc.co.uk/news/business-52468881

The owner of Odeon Cinemas has banned all Universal films after the studio said it will release new movies at home and on the big screen on the same day.

AMC boss Adam Aron said the ban will cover its 1,000 cinemas worldwide.

It follows comments from NBCUniversal which said the film Trolls World Tour had performed well despite only being available on streaming services.

The move is damaging to cinemas as it will make it less likely people will visit a public screening.

The children's film is reported to have generated sales of nearly $100m.

Trolls World Tour was scheduled for release in cinemas at the beginning of April.

However, with cinemas currently closed because of the Covid-19 lockdown, it was offered as a Premium Video on Demand (PVOD) on streaming platforms such as Apple TV.

Jeff Shell, president and chief executive of NBCUniversal, parent company of the film studio, told the Wall Street Journal the film had "exceeded our expectations and demonstrated the viability" of streaming.

"As soon as theatres reopen, we expect to release movies on both formats," he said.

But in a letter to Universal Studios' chair Donna Langley, Mr Aron accused the studio of trying to "have its cake and eat it too".

He said: "AMC believes that with this proposed action to go to the home and theatres simultaneously, Universal is breaking the business model and dealings between our two companies."

He added: "Going forward, AMC will not license any Universal movies in any of our 1,000 theatres globally on these terms."

John Fithian, chief executive of the National Association of Theatre Owners, accused the film company of using the pandemic to alter the existing release structure.

"Universal does not have reason to use unusual circumstances in an unprecedented environment as a springboard to bypass true theatrical releases," he said.

Image copyrightGETTY IMAGESImage captionAMC owns the Odeon chain of cinemas
It has already been announced that another Universal film - The King of Staten Island - will have its premier on video on demand in June.

But there are a number of other major Universal movie releases which had been planned to be shown in cinemas later this year, including the next instalment of The Purge horror movie franchise.

Mr Aron said the ban could be extended to other studios if they chose to go down the same route as Universal.

Though he said: "Universal is the only studio contemplating a wholesale change to the status quo."

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Seems this business crashing CAN be blamed on Trolls!

 

[thx1138]

"Stay in your capsulesHOUSES, wagies. Films will be piped to you. OurYour selection of groceries and approvedAmazon goods will be shipped to you. No need for you to get up and move about."

 

[Sped Xing]

Lol, so they're admitting that the only reason anyone goes to theaters is because the films are not available to stream at home yet?

 

[Wheezy Asthmatic]

Looks like pirating's getting easier

 

[HumanHive]

RIP Kinoplex

 

[Pissmaster]

It's always a good idea to cut your nose off to spite your face.

 

[TaimuRadiu]

>AMC boss Adam Aron said the ban will cover its 1,000 cinemas worldwide.

Wow, if only people were going to them?

 

[Zvantastika]

Mr Aron said the ban could be extended to other studios if they chose to go down the same route as Universal.

And then what?, charge people to sit down and stare at a blank screen for a couple of hours lmao

 

[ProfDongs]

These gigantic theater chains are pretty ass and there are very good reasons they're dying.

Mr Aron said the ban could be extended to other studios if they chose to go down the same route as Universal.

This also seems like a threat that will massively backfire on AMC when other studios decide to follow suit.

 

[Powder Puff Gorl]

I hope this backfires on Universal because the decision is based on how well a children's movie did when kids are stuck at home and their parents are going insane. Parents right now will put on anything that will give them peace for a couple hours. Seems short sighted to me, but then again, we're living in a short sighted world.

 

[Sped Xing]

I hope this backfires on Universal because the decision is based on how well a children's movie did when kids are stuck at home and their parents are going insane. Parents right now will put on anything that will give them peace for a couple hours. Seems short sighted to me, but then again, we're living in a short sighted world.

How is it short-sighted to sell your product in more venues?

 

[Salubrious]

Regal Theaters has now joined the "boycott".

I agree that I think these theaters don't realize that they don't have the leverage anymore.

Good luck when Fast and Furious 9 and Jurassic World 3 come out.

 

[haurchefant]

There are some movies that are worth going to theaters for. My local Imax screened both Bladerunner movies, my dad took me to see them. It was amazing and an experience I will never forget. I actually like movie theaters, I even went to see that shit anime movie Promare at one and liked it.

But moves like this are proof that they're being mismanaged into the ground. Even with the downtick in people going I refuse to believe that there's nothing they can do to improve their business model or entice people to come in. Shit Alamo Drafthouse has an entire business model based on getting people's asses in seats. AMC can't figure that out? Fuck that shit.

 

[Antipathy]

I hope this backfires on Universal because the decision is based on how well a children's movie did when kids are stuck at home and their parents are going insane. Parents right now will put on anything that will give them peace for a couple hours. Seems short sighted to me, but then again, we're living in a short sighted world.

The decision is more likely based off the fact that theaters are closed and they want to reach out to the consumer to get their revenue, and if that means they can cut the middleman out at the same time, why wouldn't they? It's a business decision that they have every right to make.

In fact, I support this streaming idea wholeheartedly, as now new movies will need to directly compete with older movies still available. This will hopefully force an increase in quality, unless "new toy" syndrome is strong enough to carry.

 

[Drifting Panzer]

Hopefully more studios follow and call this bluff. Are the cinemas really going to ban all of them?

I live nextdoor to a cinema, but you have drag me to go there, sitting with teenagers kicking the seat, thowing popcorn and using their phones. Why suffer that when with a little patience I can see the same film stretched out on my couch when I choose, with only the company I choose?

 

[Powder Puff Gorl]

How is it short-sighted to sell your product in more venues?

The decision is more likely based off the fact that theaters are closed and they want to reach out to the consumer to get their revenue, and if that means they can cut the middleman out at the same time, why wouldn't they? It's a business decision that they have every right to make.

In fact, I support this streaming idea wholeheartedly, as now new movies will need to directly compete with older movies still available. This will hopefully force an increase in quality, unless "new toy" syndrome is strong enough to carry.

Good points, but I was thinking more about using a children's movie to make a decision, and as you point out it's probably just something that's been coming down the pike anyway. Which makes my answer short sighted. My bleeding heart also thinks about people losing jobs, along with the fact that some movies are better to watch in the theater than at home.

 

[Antipathy]

... some movies are better to watch in the theater than at home.

I'm not sure. The giant screen is cool and all, as is the surround sound, but at home you can eat whatever you want and use your own chair. If a movie falls flat if it isn't on a giant screen with surround sound, then it's probably a shitty film crapped out by JJ Abrams that relies entirely on special effects to glaze your eyes over.

 

[Duncan Hills Coffee]

As I recall, they also did this to Netflix when Netflix started producing original movies that would be released immediately. AMC's got this rule where you can only screen your movies with them if you don't release it to streaming after 3 months or so, and of course Netflix didn't want to play ball so they decided to play their own movies themselves. Doing this to Universal is basically AMC digging its own grave even faster.

 

[Powder Puff Gorl]

If a movie falls flat if it isn't on a giant screen with surround sound, then it's probably a shitty film crapped out by JJ Abrams that relies entirely on special effects to glaze your eyes over.

I remember being a kid and watching Star Wars on the big screen. Blew my mind.

FF decades later to me watching the most recent Star Wars film (can't be bothered to try to remember the title) in my living room. The disappointment was real--the movie was terrible, and I was thankful I didn't blow money watching it in the theaters.

Still, I despise movie company suits so much for ruining movies that my hope that something backfires on them, whatever it is, remains.

 

[TowinKarz]

On the verge of bankruptcy/corprate death? Here's an easy solution! Piss off one of your main suppliers!


Dual release seems like a smart option... those who like the theatre can go buy a ticket, those who like the home experience can just stream it... all on the same day? Why not make people happy? Corporatons these days have seriously lost even the notion that they should consider consumer happiness at all, let alone try to earn it through goodwill if there's a chance it might cost some money....

If the flak the vidya industry has been getting lately is anything to go by, people are not fans of staggered releases and varying levels of content unlocking at arbitrary times due to your personal subscription level anyway..... one game, one date worked fine, which is why they monkey wrenched it so hard into a headache, it stood to make them more profit on paper, but didn't consider the fact a lot of people don't want buying a video game to be like filing taxes.