Universal Pictures and Cinemark have agreed in principle to a deal that allows theatrical releases to reach viewers’ homes faster, Variety reported Monday.
The publication said the structure of the deal was similar to a recent deal Universal struck with AMC Theaters, the world’s largest movie theater chain in which Universal was given the opportunity to place new films. on digital rental platforms just 17 days after their theatrical release. .
At the time, the ad was seen as a reshuffle of the film and theater industry, as it drastically reduced the number of days a title would be offered exclusively on the big screen – which in many cases was from 75 to 90 days.
The deal also maintained that Universal would share digital benefits with AMC as part of the deal.
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For Cinemark, the partnership with Universal is different in that, depending on the terms, any film that grosses more than $ 50 million in box office sales must stay in theaters for at least 31 days, or five weekends. before it can be pulled.
During this time, all other titles may be made available for rental on digital properties after the 17 day moratorium.
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According to Variety, citing sources, the terms of the Cinemark deal will also apply to AMC.
The deal gives the Comcast-owned film studio an opportunity to mitigate losses if a title underperforms, and blockbuster titles will likely still have enough time in theaters to not eat away at the sale of tickets with a shorter theater window.
“We are extremely pleased to further strengthen our strong partnership with Universal as we evolve the exclusive cinema showcase,” Cinemark CEO Mark Zoradi said in a statement. “We believe that a more dynamic theatrical showcase, in which theaters continue to provide an event-sized launch platform for films that maximize the box office and enhance the success of distribution channels. future, is in the common interest of studios, exhibitors and, above all, moviegoers. “
|CNK||HOLDINGS CINEMARK||14,26||+0,62||+ 4,55%|
|CMCSA||COMCAST CORP.||49,54||+0,54||+ 1,10%|
|AMC||AMC ENTERTAINMENT HOLDINGS INC||3.11||+0,14||+ 4,71%|
Meanwhile, Universal said it is “more committed than ever to getting audiences to see our films on the big screen.”
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“Universal’s century-old partnership with the exhibit is rooted in the theatrical experience,” said Universal Filmed Entertainment Group President Donna Langley. “Mark Zoradi and the Cinemark team have been exceptional partners, and Peter Levinsohn [Vice Chairman & Chief Distribution Officer, UFEG] has done a remarkable job on behalf of the studio in making deals that give us the confidence to bring our films to market, keep the content pipeline in motion, and give consumers the options they are looking for. ”
The deal comes amid the coronavirus pandemic that has decimated the theater industry as Hollywood productions have been halted, release dates have been postponed and theaters closed.
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Although a number of those films have resumed production in limited capacity, rival theater chain Regal, which is the country’s second-largest, has chosen to shut down all of its U.S. locations in the meantime, highlighting the lack of new releases and a dismal ticket. Sales.