AMC Theatres Will No Longer Play Universal Movies In Response To TROLLS WORLD TOUR Success

AMC Theatres Will No Longer Play Universal Movies In Response To TROLLS WORLD TOUR Success

After Universal Pictures vowed to change the way they distribute films in the wake of Trolls World Tour being a hit on Digital platforms, AMC Theaters has vowed to no longer screen their releases...

News
By JoshWilding - Apr 29, 2020 03:04 AM EST
Filed Under: Fast & Furious
Source: The Hollywood Reporter

AMC Theaters (who also own UK Chain Odeon Cinemas) have vowed to no longer screen Universal Pictures movies in the wake of the COVID-19 pandemic. That comes after NBCUniversal CEO Jeff Shell spoke about the success of Trolls World Tour on Digital platforms (it racked up $100 million on VOD platforms in just a few weeks). 

"The results for Trolls World Tour have exceeded our expectations and demonstrated the viability of PVOD," Shell told The Wall Street Journal yesterday. "As soon as theaters reopen, we expect to release movies on both formats." In response, AMC Theaters CEO Adam Aron hit back by making a decision it's hard to imagine them not regretting down the line. 

"It is disappointing to us, but Jeff’s comments as to Universal’s unilateral actions and intentions have left us with no choice. Therefore, effectively immediately AMC will no longer play any Universal movies in any of our theaters in the United States, Europe or the Middle East," Aron wrote.

"This policy affects any and all Universal movies per se, goes into effect today and as our theaters reopen, and is not some hollow or ill-considered threat," he continued. "Incidentally, this policy is not aimed solely at Universal out of pique or to be punitive in any way, it also extends to any movie maker who unilaterally abandons current windowing practices."

Universal responded to these comments by noting that, "going forward, we expect to release future films directly to theaters, as well as on PVOD when that distribution outlet makes sense," and added that they believe they made the right move by releasing Trolls World Tour on VOD platforms given the current climate and the fact that people at home are currently without entertainment.

AMC is already in serious trouble, and it's believed that they could end up filing for Chapter 11 bankruptcy if these closures continue. However, even if they avoid that, not allowing moviegoers to watch the likes of F9 and Minions: The Rise of Gru seems like a dumb move, and is bound to hurt them. 

Should other studios follow what Universal Pictures is doing, then AMC could be left with nothing to show!

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KWilly
KWilly - 4/29/2020, 3:48 AM
AMC, don't do this to yourselves. You should be thankful if people walk through your doors again.

I wouldn't be surprised if they changed this dumb rule.
mastakilla39
mastakilla39 - 4/29/2020, 4:25 AM
@KWilly - Yeah they are going to lose a lot of money when F9, Minions, or Jurassic World, etc comes out. All those franchisea are global hits.
CorndogBurglar
CorndogBurglar - 4/29/2020, 5:04 AM
@KWilly - I'm confused. Universal isn't the only studio that released movies on VOD during COVID, are they? So why is AMC singling them out?

Or is it just because of Universal's comments that they will continue releasing movies on VOD (and theatres) even after theatres reopen?

Because honestly, don't these studios have the right to release their movies on whatever formats they want? There are other theatres aside from AMC. They aren't the only game in town anymore. In fact, the AMC in my town is outdated compared to the Xscape theatre we have, in which every seat is a recliner and the screen is much bigger.

If they think this is hurting anyone other than themselves they are crazy. Its like they're saying, "If we can't get all the money we don't want any of it." Because again, there are other theatres that Universal can release in.

ShimmyShimmyYA
ShimmyShimmyYA - 4/29/2020, 5:28 AM
@CorndogBurglar - yeah it’s only because universal is making it known they might do it, idk how the exclusivity works for studios and theaters seems more like a handshake thing rn with the concrete thing being ticket splits
KWilly
KWilly - 4/29/2020, 6:32 AM
@mastakilla39 -

AMC exec #1: "Ha! That'll show them."

AMC exec #2: "But what about the F&F and the Despicable Me franchises?"

AMC exec #1:
2013venjix
2013venjix - 4/29/2020, 6:56 AM
@KWilly - Not thankful. Grateful.
mastakilla39
mastakilla39 - 4/29/2020, 7:02 AM
@CorndogBurglar - Trolls was in a different situation. It was OK for Birds of Prey, Bloodshot, Sonic, etc to be released early on VOD/Streaming because they were released prior to the global shutdown and therefore already lost all potential profit.

Trolls was marketed and slated to be released in theaters but Universal forced it on VOD without consulting them. AMC had no choice but to ban all their films or else the other studios like Disney, Paramount, Sony, etc. will start doing the same.

TBH its not fair for the theater chain because they solely depend on the exclusivity of the studio films for profit.
Oberlin4Prez
Oberlin4Prez - 4/29/2020, 8:33 AM
@CorndogBurglar - is because those other movies were in theaters first and only had to be released early because theaters were forcefully shut down. Now WB is releasing SCOOB! Exclusive to VOD as well, however they're giving a small cut to the theater chains, and universal didn't do that. But honestly I see it as, who cares if one or two movies get released exclusive to VOD? Trolls honestly probably made more doing that than them pushing it 6 months down the road.
Origame
Origame - 6/20/2020, 10:18 AM
@CorndogBurglar - they were the first to make that decision, and now they're saying its something they'll continue to do.
Origame
Origame - 6/20/2020, 10:21 AM
@mastakilla39 - yeah. Not to mention the legal trouble theyll have with the actors (they were promised a cut of the box office)
GreedoSarducci
GreedoSarducci - 4/29/2020, 3:51 AM
Stupid move, AMC.
2013venjix
2013venjix - 4/29/2020, 6:57 AM
@GreedoSarducci - Dick move, too.
GreedoSarducci
GreedoSarducci - 4/29/2020, 7:17 AM
@2013venjix - stupid, dick, kneejerk, petty, short-sighted... no wonder this company is going bankrupt.
2013venjix
2013venjix - 4/30/2020, 8:18 AM
@GreedoSarducci - Cause of this crisis, they felt defeated and want to cut their losses.
kider
kider - 4/29/2020, 3:55 AM
Dumb move AMC...
Scoob is also not going to cinema's are they also not going to play any WB movies?
Some Disney movies are also moving straight to Disney+.
If they don't play any WB, Disney or Universal movies all they got left is Paramount and Sony.

"this policy is not aimed solely at Universal out of pique or to be punitive in any way, it also extends to any movie maker who unilaterally abandons current windowing practices absent good faith negotiations between us, so that they as distributor and we as exhibitor both benefit and neither are hurt from such changes."

Good luck with your Sony and Paramount movies AMC!
TheUnworthyThor
TheUnworthyThor - 4/29/2020, 8:27 AM
@kider - The CEO of NBCUniversal came out and said from now on they are releasing movies day and date at home as well as theaters (as the article states). That is what they are responding to. The CEOs of Disney and Warner have made no such declarations.
Iports
Iports - 4/29/2020, 3:56 AM
That’s crazy

Odeon is a huge cinema chain in the Uk theirs 3 in 30 miles around where I live

Universal have and make some of the best movies

Crazy
Alex35
Alex35 - 4/29/2020, 3:59 AM
AMC execs are not thinking straight. F&F and JW franchises alone are worth of abandoning that (dumb to begin with) "principle".
Kman
Kman - 4/29/2020, 4:19 AM
sounds emotional and petty... but you do you AMC. Doesn’t seem like a great business mov.
tmp3
tmp3 - 4/29/2020, 4:24 AM
It sounds like AMC was upset with the quote "as soon as theaters reopen, we expect to release movies on both formats" from NBCUniversal's CEO. Honestly could see Universal budging from that view point if other cinema chains start a boycott too, and they go back to the normal "theatrical first" model.
JDL
JDL - 4/29/2020, 5:08 AM
@tmp3 - The problem with the theater's position is that it will open them up to lawsuits.
David78B
David78B - 4/29/2020, 4:26 AM
Next weeks head line will be Universal Pictures buys AMC Theaters out.
JDL
JDL - 4/29/2020, 5:06 AM
@David78B - They can't. The studio's were barred from being exhibitors in a 1948 Supreme Court decision. Unless that decision is reversed they can't enter that part of the market.
IJLSA
IJLSA - 4/29/2020, 6:50 AM
@JDL - I saw a recent article saying the DOJ is reviewing the decision so it could possibly be reversed.

Also I live in LA and I know Disney owns the El Capitan Theatre I don't get why they're able to
LongMayHeReign
LongMayHeReign - 4/29/2020, 7:26 AM
@IJLSA - They can own a single theater but they can't own multiple. Amazon owns a theater also I believe.
JDL
JDL - 4/29/2020, 2:34 PM
@IJLSA - @ LongMayHeReign
What the DoJ is doing is looking at the 1940 consent decree which is a result of a 1938 lawsuit. The 1948 decision although related to the earlier suit is not at play here since the DoJ has no power over that.
Kyos
Kyos - 4/29/2020, 4:43 AM
That doesn't seem wise at all. As someone said, if they go down that road with Universal they might logically have to do the same with Disney or WB at some point, and by then they could just shut things down entirely.
LaserKing
LaserKing - 4/29/2020, 5:07 AM
The world is a changing...
kylo0607
kylo0607 - 4/29/2020, 5:24 AM
@LaserKing - Yibambe!
LaserKing
LaserKing - 4/29/2020, 7:18 AM
@kylo0607 - Hopefully some of that Wakanda technology will get here soon!
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