UNIVERSAL VS. CINEMAS
The traditional distribution method is under threat. Who’s in the right?
Offering films in cinemas and home release at the same time: good customer service or Trolling the system?
Trolls World Tour might just be the most historically significant movie since Avatar. With COVID-19 closing cinemas in March, when Universal Pictures’ promotional spend was in full swing for a 10 April release, the studio decided to release anyway, only on Premium Video On Demand (PVOD). Trolls World Tour became available to rent for $19.99 in the US, or £15.99 in the UK.
For Universal, the decision was a triumph – Trolls gleaned $100m in just three weeks, with 80 per cent of that figure going to the studio, as opposed to the 50 per cent or so it receives from theatrical box office. NBC Universal CEO Jeff Shell told the Wall Street Journal that the numbers “exceeded our expectations” and declared, “As soon as theatres reopen, we expect to release movies on both formats.”
AMC, the largest theatre chain in the US, responded within 24 hours, with its own CEO Adam Aron saying, “AMC will no longer play any Universal
movies in any of our theatres in the United States, Europe or the Middle East.” Cineworld and Odeon, the largest UK chains, followed suit: “We will not be showing movies that fail to respect the windows as it does not make any economic sense for us,” read a Cineworld statement, referring to the 90-day window of exclusivity that cinemas traditionally enjoy.
Universal’s (somewhat placatory) response? “We absolutely believe in the theatrical experience…
Going forward, we expect to release future films directly to theatres, as well as on PVOD when that distribution outlet makes sense.” Meaning? Some titles will be released day-for-date in cinemas and on PVOD (should theatres allow it), whereas others – No Time To Die, say, or Fast & Furious 9, both of which Universal postponed rather than made available for streaming – will likely respect the 90-day window.
So that’s where we stand as Teasers goes to press. It’s easy to see both sides and it will be fascinating to see who blinks first. The success of Trolls World Tour, after all, occurred in a specific set of circumstances, and much discussion and experimentation no doubt lies ahead. But two things are clear: 1) It’s a brave new world; and 2) Bond needs to be seen on a ruddy huge screen. JG
‘IT WILL BE FASCINATING TO SEE WHO BLINKS FIRST’