Is the Fall of Movie Theaters Finally Upon Us?

[Madmick]

AMC Theatres Refuses to Play Universal Films in Wake of 'Trolls World Tour'

The threat came in the wake of comments made by NBCUniversal CEO Jeff Shell regarding what the on-demand success of the family film means for the future.

AMC Theatres on Tuesday delivered a blistering message to Universal Pictures, saying the world's largest cinema chain will no longer play any of the studio's films in the wake of comments made by NBCUniversal CEO Jeff Shell regarding the on-demand success of Trolls World Tour and what it means for the future of moviegoing post-coronavirus pandemic.

Earlier in the day, Universal revealed that Trolls World Tour racked up an estimated $100 million in premium VOD rentals in its first three weeks in North America, more than enough to put the film on the road to profitability, according to the conglomerate. That's not far behind the $116 million grossed by the original Trolls in its first three weeks at the 2016 domestic box office on its way to topping out at $153.7 million in the U.S. and Canada and nearly $347 million globally, not adjusted for inflation.

Universal sent the animated family film straight to PVOD amid the ongoing coronavirus pandemic and widespread theater closures.

"The results for Trolls World Tour have exceeded our expectations and demonstrated the viability of PVOD," Shell told The Wall Street Journal, which first reported the numbers. "As soon as theaters reopen, we expect to release movies on both formats."

In a strongly worded letter to Universal Filmed Entertainment Group chairman Donna Langley, AMC Theatres chair-CEO Adam Aron said Shell's comments were unacceptable. AMC is the largest circuit in the world.

"It is disappointing to us, but Jeff’s comments as to Universal’s unilateral actions and intentions have left us with no choice. Therefore, effectively immediately AMC will no longer play any Universal movies in any of our theaters in the United States, Europe or the Middle East," Aron wrote.

"This policy affects any and all Universal movies per se, goes into effect today and as our theaters reopen, and is not some hollow or ill-considered threat," he continued. "Incidentally, this policy is not aimed solely at Universal out of pique or to be punitive in any way, it also extends to any movie maker who 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. Currently, with the press comment today, Universal is the only studio contemplating a wholesale change to the status quo. Hence, this immediate communication in response."

It didn't take long for Universal to respond. The studio issued an evening statement saying it remains dedicated to moviegoing, and that Shell's comments were misconstrued. (The statement also took a dig at AMC and the National Association of Theatre Owners for trying to "confuse" matters.)

“We absolutely believe in the theatrical experience and have made no statement to the contrary. As we stated earlier, going forward, we expect to release future films directly to theaters, as well as on PVOD when that distribution outlet makes sense. We look forward to having additional private conversations with our exhibition partners but are disappointed by this seemingly coordinated attempt from AMC and NATO to confuse our position and our actions," Universal said.

"Our goal in releasing Trolls: World Tour on PVOD was to deliver entertainment to people who are sheltering at home, while movie theatres and other forms of outside entertainment are unavailable. Based on the enthusiastic response to the film, we believe we made the right move," the statement added.

AMC has been particularly hard hit because of its debt load heading into the pandemic. Following the closure of all AMC locations in the latter half of March, Wall Street analysts predicted that the circuit would be forced to file for Chapter 11 bankruptcy, but grew more bullish after the company issued a $500 million debt offering earlier this month (Aron himself is among the corporate staff furloughed because of the closures)...

"Has left us no choice..." says the AMC CEO. Yikes. Frankly, when your reaction to a business partner's new venture that threatens your own revenues is straight to a tactically uncompromising, retaliatory absolute terminating your relationship with that partner, a source on which you depend as a middle man for said revenue, when that partner didn't intend to curtail you from the chain of distribution, I fear you have admitted your own obsolescence.

I think most of us have suspected this moment was coming, but perhaps this is the significant event signaling its arrival. These are two serious heavyweights trading blows. Recently there was a thread on the terrific comments issued by Anthony Mackie at Comic-Con in 2017 about why movies have changed (for the worse), and how it's affecting both the industry and the theaters themselves:
Anthony Mackie Explains Why Hollywood Movies Suck Now

I realize everyone is at home, and bored, but $100m is a whopping amount even with these conditions, and keep in mind that the VOD services probably take a much smaller cut of the revenues generated by the sale than the movie theater chains do. Maybe someone like @Dragonlordxxxxx has more insight into this aspect of the industry side.

Several months back I was floored when I caught a trending story on the news about the largest movie theater in Los Angeles. It has 33 screens. I think it was an AMC location. Every single one of these 33 screens was showing Frozen II. Obviously that's a successful franchise, but it didn't blow off the roof on all past box office records. I thought, "That can't be healthy. The movie theater business must really be in dire straits."

Then today I see this headline. It feels like I'm watching a house of cards just as I feel a warbling breeze against my skin. But I don't know. I second guess this feeling. This is a business that has been around for over a century now. It's almost inconceivable that it will end like this while people still love the product so much.

 

[OverCoronavirus Pressure]

I think so.
They were already dying.

I can't imagine wanting to rub elbows with a theater full of people again.

 

[loyalyolayal]

Commies own AMC.

 

[Jkillah]

Unless it's an action film or has lots of special effects, I prefer to watch films at home. I welcome any change to speed the delivery of movies to my house.

 

[Danger Dave]

AMC Theatres Refuses to Play Universal Films in Wake of 'Trolls World Tour'

"Has left us no choice..." says the AMC CEO. Yikes. Frankly, when your reaction to a business partner's new venture that threatens your own revenues is straight to a tactically uncompromising, retaliatory absolute terminating your relationship with that partner, a source on which you depend as a middle man for said revenue, when that partner didn't intend to curtail your from the chain of distribution, I fear you have admitted your own obsolescence.

I think most of us have suspected this moment was coming, but perhaps this is the significant event signaling its arrival. These are two serious heavyweights trading blows. Recently there was a thread on the terrific comments issued by Anthony Mackie at Comic-Con in 2017 about why movies have changed (for the worse), and how it's affecting both the industry and the theaters themselves:
Anthony Mackie Explains Why Hollywood Movies Suck Now

I realize everyone is at home, and bored, but $100m is a whopping amount even with these conditions, and keep in mind that the VOD services probably take a much smaller cut of the revenues generated by the sale than the movie theater chains do. Maybe someone like @Dragonlordxxxxx has more insight into this aspect of the industry side.

Several months back I was floored when I caught a trending story on the news about the largest movie theater in Los Angeles. It has 33 screens. I think it was an AMC chain. Every single one of these 33 screens was showing Frozen II. Obviously that's a successful franchise, but it didn't blow off the roof on all past box office records. I thought, "That can't be healthy. The movie theater business must really be in dire straits."

Then today I see this headline. It feels like I'm watching a house of cards just as I feel a warbling breeze against my skin. But I don't know. I second guess this feeling. This is a business that has been around for over a century now. It's almost inconceivable that it will end like this while people still love the product so much.

like the fall of blockbuster. nobody thinks it will happen til it happens.

 

[I Am Legion]

I enjoy going out to see movies in a theater. But the costs are extreme where I live and I can see the medium dying. This pandemic will change the way people behave. We already have a generation that orders everything online and have no social skills as it is.

 

[Aegon Spengler]

https://www.hollywoodreporter.com/news/steven-spielberg-predicts-implosion-film-567604



Steven Spielberg Predicts 'Implosion' of Film Industry”

“Steven Spielberg on predicted that an "implosion" in the film industry is inevitable, whereby a half dozen or so $250 million movies flop at the box office and alter the industry forever. What comes next -- or even before then -- will be price variances at movie theaters, where "you're gonna have to pay $25 for the next Iron Man, you're probably only going to have to pay $7 to see Lincoln."


—- this is a 2013 article and feels very relevant

 

[TardStrong]

I hope not, the movie theater is some of the finest magic left in this world. I love going. I like to go for the experience. Dont mind paying for overpriced snacks. I have never once had a bad experience at the theater, I just love to go. Just something you cant recreate at your house.

 

[Nameless King]

Last time I watched movie in cinema was a good 12 years ago. I would rather pay online and watch it at the comfort of my own home. With a beer and snacks.

 

[Long Dark Blues]

Perhaps.

But after being stuck working from home since 3/16, I'm chomping at the bit for live human interaction. Even if that interaction is sitting in a movie theater.

I suspect a lot of people might feel the same way.

Edit: *champing at the bit?

 

[Sakurabaism]

I'm pretty much indifferent when it comes to movie theaters. Film Festival is where it's at. Never missed Sundance for 4 years straight. People only go to theaters so they can brag about watching MCU movies before everyone does, at least that's the mindset of my generation.

 

[Otto!]

Before COVID my wife and I have been going to the movie theatre every week. We normally go on Saturday or Sunday mornings since there are no crowds then, and it’s mostly older folks so we don’t have the cellphone assholes to ruin it.

Planning to retire soon on some acreage, and my new house will have a dedicated home theatre room, fully soundproofed with leather recliners. This is a must since the small town near where we will retire has an old cinema that was on life support before COVID, so I don’t think they will survive.

 

[Sakurabaism]

Before COVID my wife and I have been going to the movie theatre every week. We normally go on Saturday or Sunday mornings since there are no crowds then, and it’s mostly older folks so we don’t have the cellphone assholes to ruin it.

Planning to retire soon on some acreage, and my new house will have a dedicated home theatre room, fully soundproofed with leather recliners. This is a must since the small town near where we will retire has an old cinema that was on life support before COVID, so I don’t think they will survive.

You seem like a cool ass old dude, we should hunt moose together with my dad.

 

[HenryFlower]

as much as i enjoy the theater experience for certain movies, i hate having to wait weeks & hope to movie gods that the theater is as close to empty as possible.

as long as the small single screen place down the street stays open, i’ll be happy.

 

[SaiWa]

I'm pretty much indifferent when it comes to movie theaters. Film Festival is where it's at. Never missed Sundance for 4 years straight. People only go to theaters so they can brag about watching MCU movies before everyone does, at least that's the mindset of my generation.

??...

Seeing a movie before everyone else isn't generational. One of the things I miss was waiting in line for a big anticipated summer movie. Those days are mostly long gone thanks to reserved seating (and online reserved seatings).. Or maybe they're not since I don't usually watch movies on opening (unless it's a MCU movie lol).

 

[JOE QUEEF]

Movie theaters=bedbugs.

 

[Kaybee]

Probably the only times I've gone to the theater in the past decade has been to see Star Wars and Hobbit movies (for the former so that I didn't have to avoid spoilers online) and maybe the odd superhero movie if friends wanted to go. I don't care for the commitment involved (can't pause the movie to take a leak or grab a snack/drink) so if this is the end so be it.

 

[DC23]

I really hope not. The cinema is on the list of things I've missed. In fairness, I do my best to avoid having to sit elbow to elbow with people anyway so book the best early seats and usually at non-peak hours if it's for a movie that's released that day / weekend.

 

[Fox by the Sea]

if it means we never have to look at Avengers movies ever again,humanity can take this hit.

 

[EL CORINTHIAN]

I would be really depressed if i couldn't go to the theaters anymore. You don't have to be in love with the concept but the increasing amounts of comments denigrating the social experience that the cinema brings when compared to sitting at home and watching it in the "comfort" of your own environment is a testament to how fucking insular society has become, which isn't surprising but it is pretty depressing.