AMC will no longer show Universal movies due to on-demand spat

[Shawn Knight]

Editor's take: As the CEO, it’s Aron's job to advocate for his company. I get that. But this approach just feels like the wrong way to go about it. AMC took a similar, confrontational stance with movie subscription services a few years back but then ultimately launched its own take on the membership program. This time around, at least from my perspective, they are in no position to be firing bullets but rather, should be collecting health kits. The Coronavirus has exposed the theater business and with the success of Trolls World Tour, studios now have definitive proof that a first-rate movie can make money without a requisite stint in theaters.

NBCUniversal CEO Jeff Shell said earlier this week that the results for Trolls World Tour, the animated film it released to premium video on demand (PVOD) earlier this month, exceeded their expectations and demonstrated the viability of the distribution method.

As soon as theaters reopen, Universal plans to release movies on both formats (through theaters and via PVOD).

AMC Theatres, the largest theater chain in the world, didn’t take too kindly to Shell’s remarks and the perceived threat against its old guard formula.

In a statement published on Tuesday, AMC President and CEO Adam Aron said the “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.”

As such, Aron said that going forward, AMC will not license any Universal movies in its theaters based on these terms. “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.”

“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,” he added.

Aron noted that the policy is not aimed solely at Universal but rather, also extends to any movie maker that “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.”

Masthead credit: jadimages, Laurie A. Smith

Permalink to story.

https://www.techspot.com/news/85035-amc-no-longer-show-universal-movies-due-demand.html

 

[fps4ever]

Yikes, good luck with that.

 

[Cycloid Torus]

Capitalism at work again. I cannot see how it works well for AMC unless they come up with some additional feature - warm popcorn and hot butter is not enough.

 

[ShagnWagn]

If movie theaters want to stay in business, they need to really nail down why people go there. For simplicity, there are a couple main reasons - an experience they can't get at home. Namely:

1. A great audio experience
Most don't have even have a sound system nor know how to build one. Soundbars are crap, sorry. Several people live in an apartment complex and can't turn it up.Sound systems aren't usually wife approved.

2. An extremely large screen
These are extremely cheap for the common person. This diminishes in the theater the further back you sit.

3. A chance to "go out", and with lots of friends/family
People like to leave the home to consider they are "doing something".

4. Snacks/food they don't have at home.

5. Movie available before at home.

#1 and #2 are much more common in the home than historically. Not much benefit here.

#3 - This they do offer, but people aren't paying unreasonable prices just to sit in a chair. Most people can't accommodate large groups of people in their homes.

#4 - Candy and drinks are much cheaper in the home.
Theaters need to offer consumables they can't get at home and at descent prices. The "fork and spoon" theaters are doing this and it's nice. Although pricey.

#5 - Artificial. This is a jerk move, and what drives piracy.

Theaters are going to need to come up with an experience most people can't get at home if they want to remain desirable. Otherwise their business is going to go downhill. I haven't been to a theater in years because it's such a ripoff. I can buy the movie permanently at home for cheaper than seeing it one time at a theater...

What would keep you going to the theaters?

 

[BadThad]

If movie theaters want to stay in business, they need to really nail down why people go there. For simplicity, there are a couple main reasons - an experience they can't get at home. Namely:

1. A great audio experience
Most don't have even have a sound system nor know how to build one. Soundbars are crap, sorry. Several people live in an apartment complex and can't turn it up.Sound systems aren't usually wife approved.

2. An extremely large screen
These are extremely cheap for the common person. This diminishes in the theater the further back you sit.

3. A chance to "go out", and with lots of friends/family
People like to leave the home to consider they are "doing something".

4. Snacks/food they don't have at home.

5. Movie available before at home.

#1 and #2 are much more common in the home than historically. Not much benefit here.

#3 - This they do offer, but people aren't paying unreasonable prices just to sit in a chair. Most people can't accommodate large groups of people in their homes.

#4 - Candy and drinks are much cheaper in the home.
Theaters need to offer consumables they can't get at home and at descent prices. The "fork and spoon" theaters are doing this and it's nice. Although pricey.

#5 - Artificial. This is a jerk move, and what drives piracy.

Theaters are going to need to come up with an experience most people can't get at home if they want to remain desirable. Otherwise their business is going to go downhill. I haven't been to a theater in years because it's such a ripoff. I can buy the movie permanently at home for cheaper than seeing it one time at a theater...

What would keep you going to the theaters?

Great post! You covered most of everything I can think of. 1, 2 & 3 are my primary reasons to go to the theater. At home my wife constantly tells me to turn it down, when we're at the theater she can't do that. LOL

 

[EClyde]

What am I going to do with my flashlight and snappy blazer now?

 

[Evernessince]

If movie theaters want to stay in business, they need to really nail down why people go there. For simplicity, there are a couple main reasons - an experience they can't get at home. Namely:

1. A great audio experience
Most don't have even have a sound system nor know how to build one. Soundbars are crap, sorry. Several people live in an apartment complex and can't turn it up.Sound systems aren't usually wife approved.

2. An extremely large screen
These are extremely cheap for the common person. This diminishes in the theater the further back you sit.

3. A chance to "go out", and with lots of friends/family
People like to leave the home to consider they are "doing something".

4. Snacks/food they don't have at home.

5. Movie available before at home.

#1 and #2 are much more common in the home than historically. Not much benefit here.

#3 - This they do offer, but people aren't paying unreasonable prices just to sit in a chair. Most people can't accommodate large groups of people in their homes.

#4 - Candy and drinks are much cheaper in the home.
Theaters need to offer consumables they can't get at home and at descent prices. The "fork and spoon" theaters are doing this and it's nice. Although pricey.

#5 - Artificial. This is a jerk move, and what drives piracy.

Theaters are going to need to come up with an experience most people can't get at home if they want to remain desirable. Otherwise their business is going to go downhill. I haven't been to a theater in years because it's such a ripoff. I can buy the movie permanently at home for cheaper than seeing it one time at a theater...

What would keep you going to the theaters?

Unfortunately for theaters, even checking multiple items off this list might not be enough anymore. I've seen a lot of people hanging out watching movies in Bigscreen VR.

https://www.bigscreenvr.com/

 

[jizzyburnizzy]

Great post! You covered most of everything I can think of. 1, 2 & 3 are my primary reasons to go to the theater. At home my wife constantly tells me to turn it down, when we're at the theater she can't do that. LOL

our wives should hang out!

 

[Vanderkaum037]

What would keep you going to the theaters?

For me, only one thing--lower prices.
I don't need to eat a hamburger or sit in a recliner while I watch a movie.

 

[m4a4]

It reminds me of the situation with GameStop (and similar). Digital is making them obsolete, and they'll need to evolve out of being a middleman to survive.

If Universal does proceed to go through with this, I expect the other big Names to follow suit. This artificial delay could've only lasted for so long (and seems to have been sped up by social distancing)...

 

[seeprime]

If movie theaters want to stay in business, they need to really nail down why people go there. For simplicity, there are a couple main reasons - an experience they can't get at home. Namely:

1. A great audio experience
Most don't have even have a sound system nor know how to build one. Soundbars are crap, sorry. Several people live in an apartment complex and can't turn it up.Sound systems aren't usually wife approved.

2. An extremely large screen
These are extremely cheap for the common person. This diminishes in the theater the further back you sit.

3. A chance to "go out", and with lots of friends/family
People like to leave the home to consider they are "doing something".

4. Snacks/food they don't have at home.

5. Movie available before at home.

#1 and #2 are much more common in the home than historically. Not much benefit here.

#3 - This they do offer, but people aren't paying unreasonable prices just to sit in a chair. Most people can't accommodate large groups of people in their homes.

#4 - Candy and drinks are much cheaper in the home.
Theaters need to offer consumables they can't get at home and at descent prices. The "fork and spoon" theaters are doing this and it's nice. Although pricey.

#5 - Artificial. This is a jerk move, and what drives piracy.

Theaters are going to need to come up with an experience most people can't get at home if they want to remain desirable. Otherwise their business is going to go downhill. I haven't been to a theater in years because it's such a ripoff. I can buy the movie permanently at home for cheaper than seeing it one time at a theater...

What would keep you going to the theaters?

One could always pour some Pepsi on the floor and then spill some food onto it, to further duplicate the theater experience. Also, you can set up borrowed smartphones at random places to light up occasionally to duplicate the "*****s texting" experience. The home is more like the theater every day. We're adapting.

 

[p51d007]

Spending the time in traffic, going to, coming home from the movies.
Weather...rain, cold, hot etc.
Chance your vehicle is damaged, broken into or stolen.
Ticket prices
Concession prices
Obnoxious people that talk, text, phone etc

I'd sometimes rather wait for it to hit PPV/torrent/cable than put up with the crap you have
to, just to see it in a theater not to mention most of the garbage on the big screen anway
is nothing more than part 2,3,4 of the same movie.

 

[brucek]

On the Universal side, of course they got unusually good results with Trolls. They had a ton of desperate parents with kids who've been cooped up inside the house for too long, and this was a tailor-made family treat for that.I don't think they should expect similar results on a routine basis once the stay-at-home orders are lifted.

 

[Vrmithrax]

On the Universal side, of course they got unusually good results with Trolls. They had a ton of desperate parents with kids who've been cooped up inside the house for too long, and this was a tailor-made family treat for that.I don't think they should expect similar results on a routine basis once the stay-at-home orders are lifted.

I think that you are correct, the Trolls results was exceptional due to the circumstances of the day. It wasn't a matter of ideal marketing, more a matter of the only real option available.

However the results came about, though... The seal has been broken, digital home delivery of new movies has been proven viable, and whole demographics who might not have thought about the possibilities have now sat through a new movie with their kids in the comfort of their own homes.

I think we'll see an interesting split - movie theaters as a destination (date, get out of the house, etc.) and movies as family entertainment. Keep in mind, you can rent that new digital release for less than just the typical ticket prices for a family of 3 or more to go to the theater to experience it, not even factoring in the time and hassles of travel, the exorbitant price of concession food, etc. For families with kids (particularly active kids), it's a win/win to rent at home and not have to fight the public fight. I think that larger family dynamic will be what pushes increasing momentum for the digital delivery system at home.

 

[Lew Zealand]

I guess we're all a little too old to remember but dinner and a movie has been a standard and successful date format for many decades. Same goes for the more casual meetup with friends or family to see an anticipated movie. Neither compare with doing the same at home, especially if home is a shared house or apartment.

 

[scavengerspc]

If movie theaters want to stay in business, they need to really nail down why people go there. For simplicity, there are a couple main reasons - an experience they can't get at home. Namely:

1. A great audio experience
Most don't have even have a sound system nor know how to build one. Soundbars are crap, sorry. Several people live in an apartment complex and can't turn it up.Sound systems aren't usually wife approved.

2. An extremely large screen
These are extremely cheap for the common person. This diminishes in the theater the further back you sit.

3. A chance to "go out", and with lots of friends/family
People like to leave the home to consider they are "doing something".

4. Snacks/food they don't have at home.

5. Movie available before at home.

#1 and #2 are much more common in the home than historically. Not much benefit here.

#3 - This they do offer, but people aren't paying unreasonable prices just to sit in a chair. Most people can't accommodate large groups of people in their homes.

#4 - Candy and drinks are much cheaper in the home.
Theaters need to offer consumables they can't get at home and at descent prices. The "fork and spoon" theaters are doing this and it's nice. Although pricey.

#5 - Artificial. This is a jerk move, and what drives piracy.

Theaters are going to need to come up with an experience most people can't get at home if they want to remain desirable. Otherwise their business is going to go downhill. I haven't been to a theater in years because it's such a ripoff. I can buy the movie permanently at home for cheaper than seeing it one time at a theater...

What would keep you going to the theaters?

Excellent list Shags though I disagree with #5. It's the thieves themselves that drive piracy in any media.

 

[Danny101]

Going to the theater doesn't have the same lure that it use to. Times are changing.

 

[Darth Shiv]

Yikes, good luck with that.

Excellent list Shags though I disagree with #5. It's the thieves themselves that drive piracy in any media.

Nah I call bullshit. Ever since Netflix, there has been a MASSIVE move in both the US and Australia AWAY from P2P downloading. That categorically proves that accessibility and not ripping off consumers will trump the want to pirate for the VAST majority of users which is really what content providers AND consumers want.

 

[Mr Majestyk]

Pretty dumb analysis from Universal basing their findings on one movie. At a time when when people were locked at home, those with kids would have been desperate for new entertainment for the rug rats. It launched at a time when they had very few options. In a normal world this would not have even rated.

For me the worst thing about going to the movies has been the steady decline in behaviour of the morons coming to the movies, constant talking, phones in use, kicking the back of your seat, spilling popcorn everywhere, getting up frequently. These morons have the attention spans of gnats. Also this last 2 years has been terrible for movie quality with far less good movies to choose from. I’ve reduced my cinema outings by about 75%, you can literally go 2-3 months without finding anything worth watching. Ticket prices in Australia are obscene and of course food and drink is a rip-off, but I never ever buy anything to eat from the cinemas, always take my own food and buy a coffee elsewhere.

 

[ZackL04]

I personally enjoy lining up a baby sitter and going out with the wife for diner and a movie.

I like the route my local theater has taken with ultra comfy heated recliners and a full bar near the concession stand.

We have a full theater with surround and a 120” projector at my home but continue to visit the theaters on occasion to get out and do something different.

I hope they dont disappear

 

[treetops]

If movie theaters want to stay in business, they need to really nail down why people go there. For simplicity, there are a couple main reasons - an experience they can't get at home. Namely:

1. A great audio experience
Most don't have even have a sound system nor know how to build one. Soundbars are crap, sorry. Several people live in an apartment complex and can't turn it up.Sound systems aren't usually wife approved.

2. An extremely large screen
These are extremely cheap for the common person. This diminishes in the theater the further back you sit.

3. A chance to "go out", and with lots of friends/family
People like to leave the home to consider they are "doing something".

4. Snacks/food they don't have at home.

5. Movie available before at home.

#1 and #2 are much more common in the home than historically. Not much benefit here.

#3 - This they do offer, but people aren't paying unreasonable prices just to sit in a chair. Most people can't accommodate large groups of people in their homes.

#4 - Candy and drinks are much cheaper in the home.
Theaters need to offer consumables they can't get at home and at descent prices. The "fork and spoon" theaters are doing this and it's nice. Although pricey.

#5 - Artificial. This is a jerk move, and what drives piracy.

Theaters are going to need to come up with an experience most people can't get at home if they want to remain desirable. Otherwise their business is going to go downhill. I haven't been to a theater in years because it's such a ripoff. I can buy the movie permanently at home for cheaper than seeing it one time at a theater...

What would keep you going to the theaters?

Don't forget laughing with a huge room full of people, gasping etc. Hearing someone scream or shutter during a scary part. The last time I saw a comedy the laughter was def infectious. (excuse the pun lol)

I don't see movie theaters going anywhere.

And another benefit, you are forced to stop looking at your phone. With so many shows, people have a hard time experiencing the same thing anymore. The old water cooler talk about the latest Seinfeld episode days are over. But we still have movies.

 

[Uncle Al]

Like Drive In theater's, the movie houses will continue to have their own special following long into the next century, although their numbers will most certainly dwindle. Movie "buffs" can tell you all about the allure and while it might not sound all that dramatic to some, for others it is part of the essentials of life. Be it old cars, drive-in's, old clothing fashions .... everyone has their specific likes that won't change with time. Call it nostalgia, old fashion, or what ever, it is part of what makes us "us".

 

[fps4ever]

To be fair to movie theaters film publishers squeeze every single penny they can out of movie theater chains. They would not be able to maintain their business without really expensive popcorn, soda and candy. They get hit so hard ticket sales would not cut it. Think of it like quick mart gas stations, they are not making money selling gas. Not saying its right or wrong because times are changing and publishers can cut out the middle man now.

 

[ShagnWagn]

To be fair to movie theaters film publishers squeeze every single penny they can out of movie theater chains. They would not be able to maintain their business without really expensive popcorn, soda and candy. They get hit so hard ticket sales would not cut it. Think of it like quick mart gas stations, they are not making money selling gas. Not saying its right or wrong because times are changing and publishers can cut out the middle man now.

This is true. Why are theaters charging so much for concessions? Because the greedy movie studios think their movies are worth the ticket price. The theaters get barely anything, and they are letting the studios get away with it. Theaters are doing movie studios a service. Why not make it like music artists getting a fraction of music sales? The music industry thinks it's "fair" artists get a penny on a $10 music sale. Let's do the same for the movie studios!

 

[mbrowne5061]

....

What would keep you going to the theaters?

Only thing I can think of, and have seen a couple of times, we offering real food instead of junk food. Basically, its a movie theater with table service and a restaurant kitchen. There is a menu at the chair, you order from a waiter, they bring everyone their meal and then start the movie. You can even schedule things like desert to be brought to you later on in the movie, or order snacks/appetizers.

As you might imagine, it is $$$$$.