Movie Theater Chain AMC Remorseful Over Studio Compliance: Examining Their Recent Actions
Groundbreaking Night at the Oscars
In a history-making move, Sean Baker clinched an unprecedented four Oscars for the film Anora, including the coveted Best Picture award on March 2. While this night will forever be remembered for this achievement, it could also mark the end of a longstanding truce about theatrical windows. During his acceptance speech, Baker shed light on the issue of how long films should be exclusive to theaters before streaming, passionately advocating for a return to a 90-day window.
Just following the Oscar ceremony, AMC Entertainment's controversial CEO, Adam Aron, addressed the need to reconsider the relaxation of theatrical windows in the post-pandemic landscape during a February 25 earnings call. Aron stated, "I sincerely hope we can implement longer windows because I believe the current industry experiment has failed." Before the pandemic, most films in the U.S. weren't available for home viewing until at least 74 to 90 days after their original release.
Notably, Aron had paved the way with a groundbreaking agreement with Universal in 2020, significantly shortening the window to 17 days for films with lower box-office earnings, and 31 days for those with higher earnings. This deal established a new norm, although most studios prefer a minimum of 40 days (based on a film's performance).
Some studios, such as Disney, have maintained a 60-day exclusive window, which Aron called "sacrosanct." However, he was quick to criticize shorter windows of 17 days and 30 days, expressing a desire to explore options for 60 days or more.
Despite resistance from some studios, Aron remains optimistic about the potential financial benefits of a minimum 45-day window for both parties. Meanwhile, CEO Sean Gamble of Cinemark, another major player in the industry, hinted at the potential confusion caused by shorter windows during a March 4 Morgan Stanley conference.
Gamble noted that, while film transitions to home viewing on a PVOD service have not significantly affected the overall trajectory of a film's lifetime, the growing awareness of short windows might lead to a reduction in overall attendance. He suggested that this trend should be monitored over time.
While the specifics of the ongoing debate between studios and theater chains remain elusive, it is clear that the future of theatrical windows and premium video-on-demand (PVOD) release timings will continue to shape the film industry landscape.
Persons
Sean Baker, Adam Aron, Sean Gamble
Company Names
AMC Entertainment, Universal, Disney, Cinemark
Titles
Anora
Enrichment Insights:
- AMC remains committed to delivering premium theatrical experiences, such as IMAX with Laser, Dolby Cinema, 4DX, ScreenX, and introducing Extra-Large Format (XLF) screens in 2025, to attract audiences back to cinemas.
- There is a pending debate between AMC and major studios regarding theatrical windows and PVOD release timing, but no explicit recent statements or documented negotiations were found in the latest sources.
- AMC's strategy, under Cynthia Pierce's leadership, aims to balance commercial appeal with evolving audience habits, prioritizing cinema exclusivity to protect theater revenues while cautiously engaging with PVOD.
Sean Gamble, CEO of Cinemark, insightfully remarked that the growing awareness of shortened theatrical windows through Premium Video-on-Demand (PVOD) might potentially reduce overall attendance. He suggested monitoring this trend over time. On the other hand, Adam Aron, AMC Entertainment's CEO, along with Disney, continues to advocate for a minimum window of 45 days for both parties, anticipating potential financial benefits.
