Via @Rebeller… hoo, boy. Short version: studios want to start releasing movies in both theater and home format on the same days. The theaters are disinclined to acquiesce to this request, to put it mildly. The dispute was all kinda-sorta stable, in that broken-stool-freakishly-balanced-on-two-legs sort of way, until the coronavirus breathed on it; and now the knives are out. Deadline:
…[NBC Universal CEO Jeff] Shell’s words in the Wall Street Journal this morning which have really stoked ire were “As soon as theaters reopen, we expect to release movies on both formats,” indicating a day-and-date theatrical-VOD shift.
In response for Shell’s dare to crush the window on embattled exhibitors,
[AMC CEO Adam] Aron, who has the largest movie circuit in the world, replied, “Going forward, AMC will not license any Universal movies in any of our 1,000 theatres globally on these terms.” And that goes for AMC sites in the U.S., Europe and the Middle East. Aron said his note is not some form of grandstanding, nor is he just being punitive to Universal, but extends to any movie maker who unilaterally abandons current withdrawing practices absent good faith negotiations between us, so that as distributor and exhibitor both benefit and neither are hurt from such changes.”
Kinda on the theaters’ side on this one, for purely selfish reasons: I like big movie theaters with seats that recline and Regal’s surprisingly tasty cheeseburgers. They’re not a bad deal, either! Soda’s a ludicrous price, but the burger and fries isn’t too dear.
…Anyway, there’s gonna be a war. Universal may or may not win it. Universal would like to go to a primarily Video on Demand model, but not if everybody else is still releasing movies in theaters. The other studios will be more than happy to take that business away from Universal, honestly. It’s like a pack of cannibal wolves; sure, they’re all happy to eat the deer, but if the deer makes it worth their while they’ll be just as happy to chew down on their own.
Yes, I’m rather proud of that metaphor, too.
Moe Lane
I wonder if we’ll see more vertical integration with specific theaters associated with certain studios. Already have it happening with stream platforms.
Isn’t that illegal, just like how the car companies aren’t allowed to own dealerships, and for the same reason?
I just looked it up, and it is. Here’s the case: United States v. Paramount Pictures, Inc., 334 U.S. 131 (1948)
Yeah, it’s .. possibly time to revisit that .. didn’t Disney buy a television network a while back? They can own *that*, but not a theater chain?
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Mew
In this case, I think the tv network isn’t (necessarily) relevant, and may not map to the car dealership/movie theater framework, because any cable company can carry the channel. If Disney came out with a competitor to Spectrum and told Cox they weren’t allowed to carry it, that would be a different matter. At least, I think that would be the relevant comparison.
I believe I shall eat some tasty, tasty popcorn, and root for injuries.
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I can feel sympathy towards the theaters about how the studios have been actively screwing then over for decades, while still resenting the theaters trying to exploit me in turn.
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Alas for the studios, I fear the viewership in China will not return to what it was. And that’s just terrible.
The thought of all that lost market revenue fills me with sorrow. Why, the PRC might have to reduce how much it steals off the top to keep the studios from abandoning ship!