#AMC Theatres CEO Believes Shorter Theatrical Release Windows Will Be the New Norm

The current emergency has impacted the business of cinema more harshly than any other tragedy in the history of the business. Recently, AMC, a leader amongst global theater chains, struck a deal with Universal Studios which will allow the studio to release movies in the home as early as 17 days after they open in theaters. The move has been decried by many proponents of cinema halls but in an interview with Variety, CEO of AMC Theatres Adam Aron stated that he expects other theater chains to soon follow suit with similar deals.

“I’m expecting that this is going to become an industry standard. I expect that some of our competitors will do this, if not all.”

Aron’s optimism flies in the face of the stance taken by Cineworld, Regal’s parent company, which has described the deal as ” the wrong move at the wrong time”. While understanding their point of view, Aron believes AMC has done due diligence in making sure the deal benefits theaters.

“I do realize that some of our competitors are anxious about this change. Change is always difficult for some to cope with. We’ve researched it, we’ve modeled it, we’ve thought about it, we’ve argued about it, we’ve debated it, and we’re sure that we’re coming out ahead.”

Under the terms of the deal, Universal can rent its films for a 48-hour period for at least $20 per rental, of which AMC will get a cut of the revenue that Universal makes. That means the theater chain giant will also get a piece of the online action when it comes to VOD earnings, which are quickly becoming a major source of income for movies. At the end of the day, Aron believes there will be many audience members who will prefer to watch new movies in cinemas even if they have the option to stream the film.

“There are certain advantages to watching a film on a 40-foot screen to watching it on a 40-inch screen. If the pandemic has taught us anything, it’s that people will do anything to get out of their house or their apartment. If you told me right now I could go spend three hours at a hardware store, I would tell you that’s an exciting afternoon.”

Unfortunately, right now, the question does not simply boil down to whether a viewer wishes to watch a movie on the big screen or on their laptops, but rather whether the viewer will be willing to run the risk of infection by visiting a cinema hall.

On that front, Aron notes that AMC’s new safety and cleaning procedures to ensure maximum safety for the audience will be expensive and that the costs will be “passed on to the consumers.” What this means that that ticket and snack prices will also be going up to deal with the added cost, making the theatrical experience an even more expensive route for moviegoers. This story originated at Variety.