Due to the COVID-19 pandemic, film companies and movie theaters have been forced to adapt. They’ve had to find new ways to stay in business.
A significant approach for some is the immediate release of movies to streaming services. This is a departure from the traditional “theater-first” model. It’s a new way of doing things.
Universal saw great success with the “Trolls World Tour” launch on Video-On-Demand. Now, they plan to continue this strategy. It’s proven to be a winning formula.
The movie generated close to $100 million. NBCUniversal CEO Jeff Shell had this to say about upcoming releases in light of this success:
We anticipate releasing movies on both formats as soon as theaters reopen.
This signifies that certain movies in the future will bypass theaters. They’ll head straight to home televisions through streaming platforms like NBC’s Peacock. It’s a change in how we consume entertainment.
However, plenty of films will still debut in theaters before hitting streaming services. That is, if movie theater companies choose to screen them. They have a say in the matter, too.
AMC Theatres wasn’t happy about Universal’s decision to keep some films from theaters. AMC Theatres chair-CEO Adam Aron responded to Jeff Shell’s comments on Universal’s future plans:
We find it disappointing, but Jeff’s remarks regarding Universal’s unilateral actions and plans have left us no choice. Consequently, AMC will no longer screen any Universal movies in our theaters across the United States, Europe, or the Middle East, effective immediately.
This presents a potential problem for Universal. They’ve got major movie releases planned, like Fast & Furious 9 (F9) in 2021, that could be impacted. It’s a bold move by AMC.
AMC Theatres is the largest movie theater chain in the US. Losing out on box office revenue might significantly hurt the company’s profits. It’s a risk they’re willing to take.
What Does All of This Mean?
The majority of TROYPOINT subscribers and visitors have cut the cord. They rely on these streaming platforms to enjoy their preferred Movies, TV Shows, and other content. It’s the new normal for many.
Universal’s shift to a hybrid movie release model is significant. This model includes releasing some films directly to VOD services, reflecting the growing importance of the digital world. Movie theaters, with rising prices and less convenience, are fading in relevance.
Many families prioritize staying home and streaming. This is often a way to cut costs. The Trolls World Tour movie was available for a one-time rental at $19.99.
This price might seem high at first. But when you compare it to a movie theater outing, it’s actually quite affordable.
What Do You Think?
What are your thoughts on AMC Theatres’ choice to stop showing Universal films? Do you believe streaming is the future of movie distribution? Have movie theaters become obsolete?
Share your opinions in the comments below! We’d love to hear from you.
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