Universal, Cinemark Strike Historic Deal Shrinking Theatrical Window for Event Pics t

[BillieCassin]

Universal, Cinemark Strike Historic Deal Shrinking Theatrical Window for Event Pics to 31 Days

Any Universal film that doesn't open to $50 million or higher will have Cinemark's blessing to make its PVOD debut after 17 days, versus a month.

Universal has struck a history-making deal with Cinemark Entertainment that will dramatically shorten the theatrical window for its films playing at the U.S. box office — including larger event pics and tentpoles — even after the pandemic ends.

Under the terms of multi-year pact, a Universal movie opening to $50 million or more at the domestic box office can be made available in the home via premium VOD beginning 31 days after it opens on the big screen.

Cinemark, the country's third-largest chain, is okay with all other Universal, DreamWorks Animation and Focus Features movies being made available on PVOD after 17 days, similar to the history-making arrangement Universal struck with AMC Entertainment in late April.

The Cinemark news is significant for several reasons. Not only does it introduce the idea of a 31-day window for tentpole or event fare, it means that two of the country's three largest movie theater circuits are on board with Universal's push to release movies in the home early and create a new PVOD window. Universal now has far more leverage.

The Cinemark arrangement further alters the landscape at a time when circuits are under siege because of COVID-19, with no certainty as to what moviegoing will look like when there's a vaccine.

Terms weren't disclosed, but Cinemark and AMC are expected to share in the PVOD revenue.

“We believe a more dynamic theatrical window, whereby movie theaters continue to provide an event-sized launching platform for films that maximize box office and bolsters the success of subsequent distribution channels, is in the shared best interests of studios, exhibitors and, most importantly, moviegoers," Cinemark CEO Mark Zoradi said in a statement.

The agreement includes at least three full weekends (17 days) of theatrical exclusivity for all Universal and Focus theatrical releases, at which time the studio will have the option to make its titles available across PVOD. Any title that opens to $50 million or more, including many franchise titles, will play exclusively in theaters for at least five full weekends (31 days).

“Universal’s century-long partnership with exhibition is rooted in the theatrical experience, and we are more committed than ever for audiences to experience our movies on the big screen,” said Universal Filmed Entertainment Group chairman Donna Langley.

UFEG vice chairman and chief distribution Peter Levinsohn played a key role in the deal alongside Langley.

Universal Pictures, Focus Features and DreamWorks Animation have five theatrical releases remaining on the 2020 calendar: The Croods: A New Age (11/25), Half Brothers (12/4), All My Life (12/4), News of the World (12/25) and Promising Young Woman (12/25).


https://www.hollywoodreporter.com/ne...ics-to-31-days

Wow, this is a game-changer. I can only assume more studios are going to follow suit.

[CyberpunkCentral]

Makes sense.

[slumcat]

This is the beginning of the end of theatrical.

We all have busy lives. I personally often caught movies in 2nd or 3rd week. If its only 1 week more on home video, I will wait.

[Lee A Stewart]

Originally Posted by slumcat

This is the beginning of the end of the 90 day theatrical window.

fixed it!

[ltb2.0]

Originally Posted by slumcat

This is the beginning of the end of theatrical.

We all have busy lives. I personally often caught movies in 2nd or 3rd week. If its only 1 week more on home video, I will wait.

Theatrical has survived

WWI
Stock Market Crash
Great Depression
WWII
Television
Home Video
Internet

The theatrical is not going anywhere. If anything, with fewer theatrical, it just means that those theatrical releases will become event pictures.

The best theoretical I can give is

Solo comic book movies would be streaming
Crossover/Team-ups would be theatrical

[MazeRunner]

I was going to say I'm okay with this but then I saw "even after pandemic ends" byeeeee.

It should be "if the film doesn't open to $20M or higher!" not $50M.

[Lee A Stewart]

The Universal/AMC deal happened on July 29th. Now the Universal/Cinemark happens today: Nov. 16th - 3.5 months later. And no other studio has entered into such a deal. Why?

[Lee A Stewart]

Originally Posted by MazeRunner

I was going to say I'm okay with this but then I saw "even after pandemic ends" byeeeee.

It should be "if the film doesn't open to $20M or higher!" not $50M.

It's a multi-year deal:

Under the terms of multi-year pact, a Universal movie opening to $50 million or more at the domestic box office can be made available in the home via premium VOD beginning 31 days after it opens on the big screen.

It will be in place long after the pandemic is over.

[ltb2.0]

Originally Posted by MazeRunner

I was going to say I'm okay with this but then I saw "even after pandemic ends" byeeeee.

It should be "if the film doesn't open to $20M or higher!" not $50M.

Honestly this has no effect on the core moviegoing audience. This only changes the habits of the casual movie goer.

[Gacivory]

Is anyone else bothered by the rogue “t” at the end of the title?

Edit: I see what happened. The copy and paste of the title was longer than the thread would allow. The “t” is from the start of “to 31 days”. Sorry for the misunderstanding.

[Lee A Stewart]

Originally Posted by Gacivory

Is anyone else bothered by the rogue “t” at the end of the title?

Same article, different headline:

Universal & Cinemark Ink Shortened Theatrical Window-PVOD Share Pact In Wake Of AMC Deal

https://deadline.com/2020/11/univers...al-1234616550/

[Fenway55]

Originally Posted by ltb2.0

Theatrical has survived

WWI
Stock Market Crash
Great Depression
WWII
Television
Home Video
Internet

And this situation is completely unlike any of those (well, except for the fact that it is the internet which has led to VOD, and the internet remains an ongoing entity, so you can't quite say theatrical has survived it).

I am not saying theaters will completely disappear, but I can sure see an awful lot of them closing up in the not-too-distant future.

So then the industry will respond in kind, gearing their pictures with the knowledge that VOD is where the money is for them.

[ltb2.0]

Originally Posted by Fenway55

And this situation is completely unlike any of those (well, except for the fact that it is the internet which has led to VOD, and the internet remains an ongoing entity, so you can't quite say theatrical has survived it).

I am not saying theaters will completely disappear, but I can sure see an awful lot of them closing up in the not-too-distant future.

So then the industry will respond in kind, gearing their pictures with the knowledge that VOD is where the money is for them.

.... Adaptability. they have overcome bigger problems in the past, they will overcome this.

VOD is just the latest iteration of broadcast television and cable. It might take a little while for them to work out the kinks, but they will adapt and survive.

Theatrical has survived the internet as it's still alive. They've endured piracy, they've endured hacks, that have endured everything the past 20 years of internet has thrown at them.

But if people want to insist that this is the final nail in the coffin of theatrical, go right ahead.

Studios will gear VOD titles to be quieter affairs, movies that wouldn't otherwise see the light of day will get a chance to shine. All VOD is doing is allowing for smaller films to flourish again.

As I've said before, the chains are probably done for. Say goodbye to AMC/Regal/Cinemark et al. Theatrical exhibition will become regionalized until the studios or others start snapping them up. But at this point, it'll probably be at least 5-6 years before that happens.

It's just gonna be a long couple of years.

TLDR: VOD will have no effect on the core movie going audience. The chains will die out, making exhibition regionalized. Studios or companies will invest once they recover from 2020.

[Lee A Stewart]

How Wall Street Is Reacting to Cinemark-Universal Theatrical Window Deal

https://www.hollywoodreporter.com/ne...al-window-deal

[Lee A Stewart]

Everything You Need to Know About Universal and Cinemark’s Early VOD Deal

https://variety.com/2020/film/news/u...ow-1234833613/

[MazeRunner]

Originally Posted by Gacivory

Is anyone else bothered by the rogue “t” at the end of the title?

Edit: I see what happened. The copy and paste of the title was longer than the thread would allow. The “t” is from the start of “to 31 days”. Sorry for the misunderstanding.

Actually, this post is sponsored by T-Mobile. But it got cut off.

[L.J.]

Sounds about right.

[Lee A Stewart]

Originally Posted by ltb2.0

As I've said before, the chains are probably done for. Say goodbye to AMC/Regal/Cinemark et al. Theatrical exhibition will become regionalized until the studios or others start snapping them up. But at this point, it'll probably be at least 5-6 years before that happens.

It's just gonna be a long couple of years.

TLDR: VOD will have no effect on the core movie going audience. The chains will die out, making exhibition regionalized. Studios or companies will invest once they recover from 2020.

I have to disagree with you. It won't be the major chains who die out, It will be the regional theater chains: 2, 3, 20 etc. who will not be able to weather this storm. They account for 50% of the existing screens. For them, being in debt means tittering on the verge of going out of business. They can't just issue more stock like AMC, Cineworld or Cinemark can. Going to a bank to borrow money, being heavily in debt, with no immediate fix means rejection.

Money can be made available to these regional theater chains through Save Our Theaters which is part of the CARES Act (publicly owned theaters are not eligible for any money). Unfortunately our Congress is still deadlocked and time is running out. Many won't be in business by the end of December.

[ltb2.0]

Originally Posted by Lee A Stewart

I have to disagree with you. It won't be the major chains who die out, It will be the regional theater chains: 2, 3, 20 etc. who will not be able to weather this storm. They account for 50% of the existing screens. For them, being in debt means tittering on the verge of going out of business. They can't just issue more stock like AMC, Cineworld or Cinemark can. Going to a bank to borrow money, being heavily in debt, with no immediate fix means rejection.

Money can be made available to these regional theater chains through Save Our Theaters which is part of the CARES Act (publicly owned theaters are not eligible for any money). Unfortunately our Congress is still deadlocked and time is running out. Many won't be in business by the end of December.

I should be more specific. I completely failed to even consider the fate of the current regional theaters. Seriously, I haven't even given them a thought, they just don't really exist in my area. However we have a Potato Museum if that interests you. Or perhaps a hotel shaped like a dog is more your speed.

My straight forward thinking was that the chains are pretty much done for at this point, but from their ashes will rise a new regionalized market, where you'll have territories/circuits like Pro Wrestling before the WWF went national. More fragmented perhaps, but still similar in concept.

My point is, theatrical exhibition and distribution will undergo a major change, but it will still be there.

Just for fun I looked up the theater count in my state. According to Cinema Treasures, we have 70 open theaters, with only 58 of those currently showing movies.

[Fenway55]

Originally Posted by ltb2.0

.... Adaptability. they have overcome bigger problems in the past, they will overcome this.

I am not sure any of those other problems were "bigger problems" to the movie industry than this one is.

(Don't get me wrong, obviously things like the Great Depression and the WWs were pretty darn big problems to society at large, but not big and permanent problems to the movie industry like this current problem is)