Studios Still Need Theatres
Throughout the pandemic, the future of movie theatres was questionable. On top of that, streaming services had also been introduced in a new way, releasing movies the same day as theatres, which made it difficult for theatrical exclusivity to stand a chance. The already struggling theaters seemed to be facing an existential crisis, making it difficult for them given the fact that the world may no longer need them due to streaming services.
However, now that theatres have begun to reopen, feature films are finally having the chance to debut after long delays, and things are looking better for theatres, as well as the film industry as a whole. Over the past few months, studios have made deals with exhibitors, including AMC, Cinemark, Cineworld, among others, for exclusive theatrical window releases. This is a testament to the fact that even the studios associated with streaming services believe that the need for theatres is definitely still there in order for major releases to reach a certain level of success. 
On an earnings call this month, AMC’s CEO Adam Aron announced that the company had reached a deal with Warner Bros., which would entail the release of films to be exclusive to theatres for 45 days in 2022. This is a huge shift, considering WarnerMedia’s hybrid release model, which meant that all Warner Bros. films in 2021 were premiering in theatres, as well as HBO Max on the same day.
“In this same vein, I’m also pleased to announce today that AMC just reached formal agreement with our friends at Warner Bros. to show all of their movies in calendar year ’22, importantly respecting an exclusive theatrical window of 45 days prior to home release for all Warner Bros films,” said Aron, AMC’s CEO. “It’s no secret that AMC was not at all happy when Warner decided in December to take movies to the home on HBO Max simultaneously with theatrical release.”
Many cinema owners were not happy with what transpired in 2021, given that studios were taking away from exclusively debuting films in theatres. The fact that films were simultaneously being released in-theatres and on streaming platforms made it extremely difficult for theatre owners. But now that studios are starting to come around and establish exclusive theatrical windows with theatres, it gives cinema owners, actors, filmmakers and the film industry as a whole more hope for 2022.
“Therefore, it’s especially gratifying that Warner is yet again embracing an exclusive theatrical window,” Aron said on the call. “And for us at AMC, it’s especially pleasing to be working so harmoniously with Warner Bros. once again. We actually are in dialogue, active dialogue with every major studio on this very important topic.”
The deal has certainly helped with patching things up for studios and theatre owners, given that because of the studios’ decisions to release movies via streaming services caused a very public falling out between the entertainment companies. The issue became so serious that at one point, AMC said that they would ban all Universal films from its theatres. But later, AMC and Universal were able to establish a deal that improved their relationship exponentially. According to Aron, the theatre chain has been in discussion with a number of other studios regarding exclusive theatrical windows.
“We believe we’re on a road to recovery, and we’re ever so grateful to our friends and allies who share our passion that AMC’s best days should be those that are coming,” Aron said. “You can take comfort that our deeper financial reserves allow us to stay the course, to innovate again, and to capitalize on the opportunities that we see around us. We fundamentally believe that ours is a future that is bright because there is nothing as magical as seeing dazzling images on a huge silver screen.”
It is an exciting thing to look forward to for theatre chains, studios, filmmakers, actors, and movie lovers. Everyone involved in the film industry certainly took a hit when movies were released the same day in theatres as they were released on streaming platforms. Actors, too, were very displeased given the fact that many actors involved have their pay tied to how well the box office numbers are.
Therefore, many studios are relying on theatres heavily in order to get back to some kind of normalcy. For the many people who enjoy watching movies in theatres, this is a huge announcement. Given the fact that studios and theatre owners are working hard to keep theatres alive is very meaningful, giving confidence to the film industry and theatres again.
Additionally, AMC has announced that it’ll be opening around a dozen new theatres around the world. This is huge, especially given that the company also announced that it will be acquiring some theatres from Arclight and Pacific Chain, which had previously announced that it wouldn’t be reopening its doors due to the pandemic.
With efforts to enhance the viewing experience, studios and theatres are hopeful that the exclusive theatrical windows will help move things in the right direction. With that being said, studios have shown that they need theatres just as much as the theatres need their films.
“We are hearing considerable support in Hollywood that an exclusive theatrical window is an important way to build big and successful movie franchises,” Aron said. “Clearly, though, this whole subject is quite topical. It’s very much a work in progress.”
In conclusion, 2022 is going to be a huge year for the film industry regardless of how things pan out with the exclusive theatrical windows in place. Some of the biggest films are set to debut in 2022, including The Batman, Black Panther: Wakanda Forever, Spiderman: Into the Spider-Verse 2, Thor: Love and Thunder, Jurassic World: Dominion, Avatar 2, and much more, making it a very exciting year for the film industry and movie lovers to look forward to.
About Vedette Finance
Founded in 2012, Tarek Anthony Jabre launched Vedette Finance, a Los Angeles-based film development and finance company. As a company dedicated to handling film projects at all different stages of production, Tarek Anthony Jabre’s aim is to maintain a consistent delivery of high end product, quality, and financial return in the entertainment industry. Vedette Finance’s objective is to creatively develop its premium value slate and provide structure to financing in order to produce a diverse range of film projects. To learn more about Tarek Anthony Jabre visit www.VedetteFinance.com.