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Universal Issued a Response to AMC

Recently, AMC decided that they would no longer show any Universal films following a comment from Universal about VOD releases. Universal felt that, for now, it would be much easier to release their films on VOD than to wait for theatrical releases to be available again. Even when theaters re-open, they have said they will go back to theatrical releases, but will also release straight to VOD. Universal has said that the straight to VOD model has been something they have been considering since 2011, but have only been able to try recently due to the pandemic. Now that it is working out for them at least to some degree, they want to change up the formula, possibly permanently.

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Universal has reported that their first direct to digital title, ‘Trolls: World Tour,’ did better in three weeks since its release than the first film did over months in theaters. Of course, this can be attributed to a number of different factors such as it being a sequel that people are more aware of and a lot of people are now stuck at home with nothing to do. The latter being a pretty big part of why they are bringing in revenue. However, what will happen when theaters re-open in the following months? This is why Universal decided it would eventually, and simultaneously, release films on both VOD and in theaters.

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This got on the nerves of AMC’s CEO Adam Aron, who has said that when it is safe to re-open theaters to the public, AMC will no longer show films by Universal. Universal, of course, has come up with a response to AMC regarding this sudden plan for them to no longer show their films. In their response, they say that their reason for releasing movies straight to VOD is to give the people who are stuck at home something to keep themselves entertained since they can’t go out anywhere. Since the response to that release was one of enthusiasm, they believe that they made the right move.

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Our desire has always been to efficiently deliver entertainment to as wide an audience as possible.” This sentiment is what Universal essentially means in their response, and they even reiterate the fact that they still believe in theatrical releases. They say that, on the contrary, theatrical releases are important to a film, but they simply want to change things up a little by also releasing movies straight to VOD. They only plan on releasing them straight to VOD when that outlet makes sense as well, not every single time. Universal also says that it is going to be having additional discussions with exhibition partners and is upset by AMC and NATO’s attempt to confuse their position. What will happen next between the companies is unknown, but if things are left unchanged, Universal will have less theaters to show its films in.

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