WARNER BROS WILL DEBUT ITS 2021 FILMS ON THE SAME DAY

LOS ANGELES: AT&T Inc’s Warner Bros studio will debut all of its 2021 films in theaters and on the HBO Max streaming service on the same day, the company said on Thursday, an unprecedented shift that hammered shares of struggling cinema operators.

The movies, which are expected to include “Godzilla vs. Kong” and “The Suicide Squad,” will be available on HBO Max for one month starting on the same day they hit theaters, the studio said in a statement.

“Mortal Kombat,” a new version of “Dune” and a “Matrix” sequel also are scheduled to follow the new release pattern.

Shares of AMC Entertainment, the world’s largest theater operator fell almost 16%, and rival Cinemark dropped about 22%. AT&T shares closed up slightly.

The change, led by Warnermedia CEO Jason Kilar, was the most aggressive move to date to bring movies into homes sooner, and it sent a shock across Hollywood. Theaters have long resisted attempts by studios to shorten the time that cinemas can offer new movies exclusively.

Kilar, a former Amazon.com Inc executive and the founding CEO of Hulu, took over AT&T’S media division in May and has restructured businesses to focus on HBO Max, the company’s new competitor to Netflix Inc.

“We know new content is the lifeblood of theatrical exhibition, but we have to balance this with the reality that most theaters in the U.S. will likely operate at reduced capacity throughout 2021,” said Ann Sarnoff, chair and CEO of Warnermedia Studios and Networks Group.