Universal Pictures and AMC theatres have finally put their feud to bed and come up with a deal that will see the studio’s films premiering on premium video-on-demand within three weeks of their theatrical debuts.
Back in April, due to the PVOD release of ‘Trolls World Tour’, Universal made the unprecedented announcement that they would release films via PVOD at the same time as its cinema release. This caused a backlash amongst the leading the cinema chains across the globe with the result in the threat of removing all Universal films from their slates.
The latest agreement was announced yesterday without revealing the financial agreement, but AMC CEO Adam Aron stated they would receive a cut of the money made via digital rentals “the company will “share in these new revenue streams”.
The deal means that Universal cannot sell films or rent them for lower on-demand fees, in the $3 to $6 range, until three months after they debut in cinemas.
“The theatrical experience continues to be the cornerstone of our business,” said Donna Langley, chairman of Universal Filmed Entertainment Group. “The partnership we’ve forged with AMC is driven by our collective desire to ensure a thriving future for the film distribution ecosystem and to meet consumer demand with flexibility and optionality.”
The two companies are still to come to a decision regarding international distribution agreements in the countries in Europe and the Middle East served by AMC, a decision should be made public within the next couple of weeks.