AMC Theaters And Regal Stand Against Universal’s VOD Tactic

AMC Theaters joined Regal in refusing to show Universal Pictures films in the reopening of their cinemas once the lockdown restrictions are lifted. The move came after Universal's decision to release some of their movies directly to video rather than wait for them to be released on theaters once they open again.

IGN reported that Cineworld, Regal Entertainment’s parent company, will no longer show Universal movies in the future. In a statement, the movie house announced that they will not show any movies from the production outfit, as “it does not make any economic sense” for the cinema company.

Universal Pictures drew flak when it reported how great “Trolls: World Tour” did on VOD and shared its plans to explore releasing other films straight to video. Opting to release their films straight to video due to the current lockdown, Universal gambled on the "Trolls" movie. According to Pocket Lint, NBC Universal enjoyed a $100 million profit in releasing the movie straight to video. It made that amount in its first three weeks in the U.S., making more than the original "Trolls" movie ever did in cinemas.

NBC Universal chief Jeff Shell said that the results for the movie have “exceeded” the expectations of the company. Opting to maximize most of their distribution options, Shell said that they would still choose to release movies on both formats, making the most out of profits.

Meanwhile, AMC’s CEO Adam Aron addressed the issue in an open letter to Universal Chair Donna Langley. “We want to be absolutely clear... 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 wrote.

Universal had rescheduled or postponed the releases of its other upcoming movies, including “Fast & Furious 9,” “Jurassic World: Dominion” and “Minions: The Rise of Gru.”