AMC Theatres Face Off Against Universal by Refusing to Release their Movies

AMC Theatres released a statement recently that they will no longer play any Universal films. Effective immediately, the decision came as a result of ‘unacceptable’ comments made by Jeff Shell, who serves as the Universal CEO. Shell had decided to forego a traditional theatre release and opt instead for a digital release. As per the Hollywood Reporter, Universal went ahead with a digital release for its new movie Trolls World Tour, which became quite a success. Here’s a look at how the ban can affect Hollywood and Universal.

Comments Turn Foul

As per an interview in the Wall Street Journal, Shell stated that the new Trolls movie raked in over $100 million via digital sales having sold more than five million copies. Shell also said that he planned to release the film in all formats once theatres opened again after the COVID-19 crisis. Universal seems to be taking a 50-50 approach, with some of their movies having theatrical releases. In contrast, others will go to digital retailers or Universal’s new service, Peacock. However, soon after this interview, AMC Theatres CEO Adam Aron hit back by stating that the company will no longer play any of NBCUniversal’s movies. Aron deemed Shell’s comments to be unacceptable and said that it was disappointing to see how Shell had reacted. He went on to say that Universal’s actions had left them with no choice but to decide to boycott all of their future films. Such a ban, which comes into effect immediately, will be valid across all their theatres across Europe, the Middle East and the US.

Big Blow

Aron went on to confirm that his statement is not a hollow threat, but rather a policy that has been made and will come into effect immediately. Since AMC Theatres is the largest chain of cinema halls in the US, this could turn out to be a big blow for Universal. With a lot of new releases waiting to come out after the lockdown ends, Universal will have to come up with a way to counter this move. The ninth movie in the Fast and Furious franchise titled F9, is slated to release in April, next year. The movie’s production was delayed, resulting in the film being postponed to next year. Since F9 is part of an immensely popular franchise, Universal is expecting it to bring in over $1 billion via global box office revenue.

Change in Status Quo

Furthermore, Aron also made it clear that this move is not for Universal alone, and that it should serve as a warning to everyone. If production companies decide to abandon current release procedures and forego negotiations with distributors like AMC, they will have to resort to such measures. Aron also said that while they are aware that Universal was not the only studio preferring to bypass theatrical releases, Shell was someone who wants to change the entire status quo of the industry. These statements were necessary because AMC had not taken such measures against Disney and WarnerMedia who went the digital route with their movies Artemis Fowl and Scoob!

It is interesting to note that the success of the Trolls World Tour came at a crucial time for both studios and theatres. Most cinema chains and independent theatres are looking at a bleak future due to the COVID-19 induced-lockdown. For instance, AMC Theatres itself, which is the US’s largest cinema franchise is generating no revenue as of now due to all their theatres being closed. The AMC letter addressed to the Universal Group Chairman Donna Langley, will call attention to Shell’s comments.

However, there have been no further comments from Universal in this regard. All movie fanatics will have to wait and see how this face-off ends to get to know whether they will be able to watch their favourite films in theatres. With the world going through such a difficult time, many people are just waiting for this to end to enjoy a movie in their local theatres. If more cinema halls decide to follow suit against studios this way, people will have to resort to streaming services such as Netflix and Amazon Prime for their entertainment needs.