Industries worldwide have been forced into transition during the Covid era, with alternative concepts for market growth being introduced. The film industry has experienced a pivotal shift, with streaming services becoming adopted over cinemas. Theatres worldwide haven’t earned monetary compensation since March 2020, with influential brands like AMC & Regal warning of their bankruptcy. Brands like Cinemark have selected an objective strategy as of November 17th. An updated distribution contract was announced by Universal Pictures & Cinemark, with industry analysts praising the agreement for its revolutionary format. Analysts predict that other production studios & cinemas will sign similar contracts if this format sustains high margins.
Universal Pictures & Cinemark confirmed their latest distribution began with “Freaky”, a movie mentioned last week with Vince Vaughn. Under the new contract, Freaky would launch with Cinemark on November 13th & become available on streaming platforms starting November 17th. It’s unknown how long this timeframe format will be sustained, with Cinemark remarking the contract is accounting for consumer demand during the Covid-19 pandemic.
Most production studios in Hollywood have resisted the Covid-19 pandemic, refusing distributions methods that would transition their brands to the quarantine era. Universal Pictures didn’t sustain their standard formats and began releasing new films to On-Demand services like “Google Movies”. Universal’s most popular Covid film was “Trolls: World Tour”, which earned more than $400 Million on its digital opening weekend. Other films released by Universal Pictures during the Covid era include:
- The Hunt
- The Photograph
- The Turning
- The King of Staten Island
- The Invisible Man
Summer saw Universal Pictures & AMC Theatres implement a similar contract with longer timeframes. Films releasing to AMC cannot become available for “On-Demand & Streaming Services” until seventeen days after their initial cinema release. It should be noted that before Covid-19, movies weren’t permitted to release digitally until 75 to 90 days after their theatre release.
Cinemark Theatres clarified that movies releasing with opening weekends of $50 Million or more, will sustain five weekends in cinemas before distributing digitally to various On-Demand services like Apple Movies. Ultimately, these contracts offer an opportunity for production houses to generate increased revenue during the Covid era & still support international theatres.