Until now, 90 days had elapsed in the United States between the screening of a film and its digital release. A new agreement reduces this period to 17 days.
The film “La La Land” screened in a drive-in, in Seville, Spain, July 11, 2020.
AFP
They were at war since the end of April on the delays between the release of a film in theaters and its streaming: AMC, number one cinemas in the United States, and Universal Studios, announced Tuesday an agreement “historic In the matter.
Until now, it was customary in the United States that a 90-day period elapsed between the first screening of a film and its release in any digital format (DVD, video on demand). The “multi-year” agreement concluded between Universal and AMC reduces this period to 17 days, according to a statement from the two groups.
“The theatrical experience continues to be the heart of our business. The partnership forged with AMC is driven by our mutual desire to ensure a prosperous future for the film distribution ecosystem and to meet consumer demand, ”said Donna Langley, president of Universal Pictures, in the statement.
Sector in difficulty
“AMC welcomes this new industrial model with enthusiasm,” assures the general manager of the largest cinema chain in North America, with 8,000 screens. “Premium video on demand adds to the profit potential of film studios, which in turn should translate into more films being released,” says Adam Aron.
At the end of April, Adam Aron had however strongly criticized Universal, which had expressed its intention to release its films both in theaters and on VOD platforms, even after the Covid-19 pandemic had passed. AMC had even written to the studios to warn them that it would not show “any more Universal films in its theaters” as a retaliatory measure.
The terms of the agreement announced Tuesday, which comes as the global film industry is challenged by the health crisis and containment, remain “confidential,” the statement insists. But the two groups will begin in the coming weeks “discussions around distribution agreements in European countries and the Middle East”, where AMC is established, they specify.
Last year, the cinemas garnered record profits, to the tune of 42.5 billion dollars (39 billion francs), thanks in particular to a series of big Disney productions. But most of their growth has taken place outside North America. Theater operators have long viewed the enthusiasm for streaming services in a negative light.
(ATS / NXP)
–
