LOS ANGELES (CBSLA) – Home audiences will get to watch new Hollywood releases much earlier under a deal announced Tuesday.
Universal Pictures and AMC Theatres say the historic agreement will make Universal movies available for video-on-demand (VOD) platforms after screening for 17 days in AMC theaters across the United States.READ MORE: Xavier Pabon, Samer Jayylusi Charged With Hate Crime In Attack On Jewish Diners Outside Beverly Grove Sushi Restaurant
AMC – the nation’s largest theater chain – will share in the revenue generated by the on-demand business.
The agreement also applies to releases from Universal’s Focus Features.
Historically, major Hollywood studios have exhibited new movies exclusively in theaters for roughly three months before releasing them for VOD.READ MORE: Coroner Confirms Remains Found Are Gabby Petito’s, Says Manner Of Death Is A Homicide As Search Resumes For Brian Laundrie
Both Universal and AMC execs say the move represents a new model for the industry.
“AMC enthusiastically embraces this new industry model both because we are participating in the entirety of the economics of the new structure, and because premium video on demand creates the added potential for increased movie studio profitability, which should in turn lead to the green-lighting of more theatrical movies,” AMC CEO Adam Aron said.
AMC – which has been hard-hit by the coronavirus shutdown – said earlier this month that it would delay reopening until at least July 30 due to the surge in COVID-19 cases.MORE NEWS: California Reports Lowest COVID-19 Case Rate In The Nation
Aron had previously threatened to boycott all Universal films after the studio announced “Trolls World Tour” would be released in any cinemas that were open and on VOD.