Cineworld, an owner of the Regal Entertainment exhibition chain, is joining AMC Theatres in refusing to play some Universal Pictures films in the wake of NBCUniversal CEO Jeff Shell’s promise to open titles on premium VOD and in theaters concurrently.
“Universal’s move is completely inappropriate and certainly has nothing to do with good faith business practice, partnership, and transparency,” Cineworld said.
Cineworld made the announcement on Wednesday, a day after AMC Theatres said it won’t screen Universal titles. The moves are in response to Shell’s claim that “as soon as theaters reopen, we expect to release movies on both formats.”
“The results for the ‘Trolls World Tour’ have exceeded our expectations and demonstrated the viability of PVOD,” Shell said.
“Trolls World Tour” went on sale as a 48-hour rental for $19.99. Prior to the pandemic, studios typically waited 90 days after a theatrical opening to release films digitally. “Trolls World Tour” took in $100 million in premium VOD rentals in its first three weeks of play in North America.
Cineworld indicated that its ban on Universal titles applies only to films that are being released earlier than the typical 90-day period: “Today we make it clear again that we will not be showing movies that fail to respect the windows as it does not make any economic sense for us.”
Regal has 7,211 screens in 549 theatres in 42 states. It’s the second-largest North American chain after AMC.
“Cineworld’s roots go back 90 years in the industry and it was always open to showing any movie as long as the rules were kept and not changed by one-sided moves,” the company said. “Today we make it clear again that we will not be showing movies that fail to respect the windows as it does not make any economic sense for us. We have full confidence in the industry’s current business model. No one should forget that the theatrical side of this industry generated an all-time record income of $42 billion last year and the movie distributors’ share of this was about $20 billion.”