AMC Theaters are banning Universal Pictures films

[Uitomy]

I understand why AMC wants to discourage this, but its been a long time coming.
IMAX and special movies are the only thing that will exist in the future, typical theaters are dead

Dude fukk that, movies will end up being like 45$ a ticket. I really hope at worst it'll just be theaters in major metro areas and most people will have to travel a bit if they live outside of them.

 

[Lootpack]

 

[humminbird]

Look at this letter they sent

Donna Langley
Chairman
Universal Studios

Dear Donna,

At this time of national emergency and the coronavirus wreaking havoc on the entire world, I hope that you and your loved ones are healthy and safe. I worry – and I wish the best for – the health of all of our industry colleagues. Never in our lifetimes has there been a more challenging time.


Amidst a global pandemic as a backdrop, I wish we were spared from also having to address a different issue that arises from Universal actions currently underway.

For 100 years, AMC Theatres has served as a strategically critical and highly profitable distribution platform for movie makers, and for all that time the exclusivity of the theatrical release has been fundamental. When a movie is “Only in Theaters,” consumers perceive it to be higher quality entertainment. Countless filmmakers and moviegoers believe that their creative works are best enjoyed by consumers on the big screen. And we all know that those theatrical releases indeed boost publicity, positive word-of-mouth, critical acclaim and downstream revenues.

For much of the past four and a half years, I have been in direct dialogue with Jeff Shell and Peter Levinsohn of Universal about the importance of a robust theatrical window to the viability of the motion picture exhibition industry. Throughout that time, AMC has expressed a willingness to consider alternatives to the current windowing strategy common in our industry, where the aim of such alternatives is to improve both studio profitability and theater operator profitability.

Universal stated it only pursued a direct-to-home entertainment release for “Trolls World Tour” because theaters were closed and Universal was committed to a lucrative toy licensing deal. We had our doubts that this was wholly Universal’s motivations, as it has been a longstanding desire by Universal to go to the home day and date. Nonetheless, we accepted this action as an exception to our longstanding business practices in these unprecedented times.


In today’s Wall Street Journal, Jeff Shell is quoted as saying that:

“The results for ‘Trolls World Tour’ have exceeded our expectations and demonstrated the viability of PVOD,” Mr. Shell said. “As soon as theaters reopen, we expect to release movies on both formats.”

This radical change by Universal to the business model that currently exists between our two companies represents nothing but downside for us and is categorically unacceptable to AMC Entertainment, the worlds largest collection of movie theatres.

Going forward, AMC will not license any Universal movies in any of our 1,000 theatres globally on these terms.

Accordingly, we want to be absolutely clear, so that there is no ambiguity of any kind. AMC believes that with this proposed action to go to the home and theatres simultaneously, Universal is breaking the business model and dealings between our two companies. It assumes that we will meekly accept a reshaped view of how studios and exhibitors should interact, with zero concern on Universal’s part as to how its actions affect us. It also presumes that Universal in fact can have its cake and eat it too, that Universal film product can be released to the home and theatres at the same time, without modification to the current economic arrangements between us.

It is disappointing to us, but Jeff’s comments as to Universal’s unilateral actions and intentions have left us with no choice. Therefore, effectively immediately AMC will no longer play any Universal movies in any of our theatres in the United States, Europe or the Middle East. This policy affects any and all Universal movies per se, goes into effect today and as our theatres reopen, and is not some hollow or ill-considered threat. Incidentally, this policy is not aimed solely at Universal out of pique or to be punitive in any way, it also extends to any movie maker who unilaterally abandons current windowing practices absent good faith negotiations between us, so that they as distributor and we as exhibitor both benefit and neither are hurt from such changes. Currently, with the press comment today, Universal is the only studio contemplating a wholesale change to the status quo. Hence, this immediate communication in response.

AMC has invested significant time and energy with Universal executives over the past few years trying to figure out a new windows model that would be beneficial both for your studio and for our theatre operations. While Universal’s unilateral pronouncements on this issue are unpalatable to us, as has always been the case, AMC is willing to sit down with Universal to discuss different windows strategies and different economic models between your company and ours. However, in the absence of such discussions, and an acceptable conclusion thereto, our decades of incredibly successful business activity together has sadly come to an end.

Sincerely,

Adam Aron
CEO and President
AMC Entertainment

if I was universal ceo I would be like who the f do you think you’re talking to?

we’re owned by Comcast bytch we’ll buy your ass if we have to

 

[FromStLouis]

I understand why AMC wants to discourage this, but its been a long time coming.
IMAX and special movies are the only thing that will exist in the future, typical theaters are dead

Yes. The movie going experience will be even better.

It'll be a curated mix of classic films, local filmmakers films, and film festivals.

There'll be speaker panels and a genuine community will rise from the ashes.

The big movies will still play there, but 5-6-7 months after their home release, but tickets will be cheaper.

 

[Brandeezy]

Look at this letter they sent

if I was universal ceo I would be like who the f do you think you’re talking to?

we’re owned by Comcast bytch we’ll buy your ass if we have to

AMC is dumb af, any movie studio can buy AMC if they wanted. Did he forget they're broke?

 

[David_TheMan]

Dude fukk that, movies will end up being like 45$ a ticket. I really hope at worst it'll just be theaters in major metro areas and most people will have to travel a bit if they live outside of them.

Then dont go to them if they are ezpensive.

Thats what the home options are for.

Theaters should be expensive and offer up a unique experience.

 

[David_TheMan]

AMC is dumb af, any movie studio can buy AMC if they wanted. Did he forget they're broke?

No studio wanta to buy tgw theater xhains, its a dying industry and some of these studios arent on good grounds

 

[Uitomy]

Then dont go to them if they are ezpensive.

Thats what the home options are for.

Theaters should be expensive and offer up a unique experience.

Most IMAX experiences are worth like 30 cap
Movies should not be expensive, they're basic entertainment, they arent worth high prices unless it's an event like a phantom showing, the food is expensive enough already. I agree it should be a unique experience, but affordable, seeing as how most movies are pretty basic anyway


Just my opinion tho, either way, fukk this countries consumerism and debt addiction for creating this whole situation, imma gonna bury my head in a rock fukk

 

[David_TheMan]

Most IMAX experiences are worth like 30 cap
Movies should not be expensive, they're basic entertainment, they arent worth high prices unless it's an event like a phantom showing, the food is expensive enough already. I agree it should be a unique experience, but affordable, seeing as how most movies are pretty basic anyway


Just my opinion tho, either way, fukk this countries consumerism and debt addiction for creating this whole situation, imma gonna bury my head in a rock fukk

I dont think you inderstand what tge vod option doea.

If you want a nice affordable experience watch at home for 30 dollars.

 

[MenacingMonk]

Petty AF. Bunch of fukkin kids in suits.

 

[Uitomy]

I dont think you inderstand what tge vod option doea.

If you want a nice affordable experience watch at home for 30 dollars.

There's no point of paying when you can do it for free at home

 

[David_TheMan]

There's no point of paying when you can do it for free at home

Yet people payes for trolls.
Most people will pay for convenience.
VoD era has begun.

Big releases lose 50% of gross to the theater, they keep all that now with streaming options

 

[FromStLouis]

AMC is dumb af, any movie studio can buy AMC if they wanted. Did he forget they're broke?

They can't own theaters, it was made illegal in the court case United States vs Paramount Pictures in 1948.

Yet people payes for trolls.
Most people will pay for convenience.
VoD era has begun.

Big releases lose 50% of gross to the theater, they keep all that now with streaming options

Exactly. Time has finally given them a way to circumvent the 1948 Supreme Court ruling.

VOD era is here. Home Theater era will soon follow.

 

[Matt504]

I watched Invisible Man on PVOD, paid ~$20 and I loved every moment of it.

fukk a theater experience, no more having to pick the slow parts of the movie to get more food.

 

[Jello Biafra]

AMC gonna walk that back quick as shyt.