Here are six burning questions raised by the Universal and AMC pact. It’s the kind of precedent-shattering pact that only came about because coronavirus has brought the theater business to its knees, limiting its negotiating power.īut it’s also an agreement that will have wide-ranging ramifications for how studios make films, how customers watch them and how cinemas and movie companies earn money. It’s only a matter of time before other theater chains feel pressure to sign similar pacts and other studios insist AMC and fellow cinemas allow them to release their films in the home earlier.

One film executive speaking on the condition of anonymity rattled off a list of questions and observations: AMC is distressed and flirting with bankruptcy studios have to share profits with the theater owners at the very start of a film’s financial life cycle what happens when people aren’t locked in their homes anymore because of COVID-19? They’re trying to do what consumers want - which is to watch movies wherever.”Īfter the initial shock of the announcement, Universal’s competitors were skeptical about the immediate impact of the deal, citing all kinds of caveats. “Universal isn’t trying to hurt movie theaters. “This is a watershed moment for the entertainment industry,” says Rich Greenfield, a media analyst with LightShed Partners.

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