(Photo: AMC/Universal)

AMC and Universal deal is changing the movie industry

The coronavirus (COVID-19) pandemic has changed how people interact with social spaces in regard to safety protocols including movie theaters but AMC Theatres is looking forward to the future. AMC Theatres CEO, Adam Aron, is working with Universal Studio chair, Donna Langley, for a deal to bring movies to fans in a shorter amount of time.

Universal Studios is the world’s largest movie theater operator and will no longer play the studio’s films at its venues, this new deal is set to shrink the traditional 70-day theatrical window. The multiyear arrangement entails Universal offering AMC three weekends (or 17 days) for theatrical exclusivity on all Focus Features and Universal Pictures films.

After the 17-day period, the studio will be able to feature films for the audience at-home through premium video-on-demand and AMC is expected to be sharing this new rental revenue. The deal will only cover United States venues but the two companies are discussing international distribution agreements in countries served by AMC including Europe and the Middle East.

Langley released a statement saying, “The partnership we’ve forged with AMC is driven by our collective desire to ensure a thriving future for the film distribution ecosystem and to meet consumer demand with flexibility and nationality.” Aron of AMC is embracing this new industry model with enthusiasm that this new deal will have the potential for increased studio profitability that will also lead to green-lighting more theatrical movies.