Cineplex agrees to shrink theatrical window for Universal movies

Cineplex Inc. has struck an agreement with film studio Universal to shorten the exclusive theatrical release window for its movies to as little as 17 days.

The multi-year deal means Canada’s largest film exhibitor has guaranteed theatrical exclusivity for three weekends on films released by Universal Pictures before the studio can choose to make them available at home on digital rental platforms.

The decision comes as cinemas face intense pressure from film studios to agree to looser restrictions on how long movies play in theatres. The factor has only been compounded by a steep decline in moviegoers in the midst of the COVID-19 pandemic.

Under the terms of the Universal agreement, films that pass US$50 million at the North American box office on opening weekend will play exclusively for 31 days, or five weekends, before Universal can choose to send them to premium on-demand, which prices rentals at $19.99 or higher.

But movies that don’t meet that threshold could play Cineplex theatres for a much shorter period.

Cineplex owns its own digital rental service, Cineplex Store, which would get a cut of the revenues from each rental.

Financial details of the partnership, which includes Universal’s prestige films division Focus Features, weren’t disclosed.

Earlier this year, Universal struck a similar deal with AMC Theatres in the United States, sending ripples through the industry as other chains faced pressure to follow in step. Cinemark, another U.S. chain, signed onto a shorter window agreement earlier this week.

Cineplex has refused for years to budge on a strict 90-day theatrical window, saying it would only screen films that committed to the threemonth exclusivity period.