In a move that could throw the release of Fast and Furious 9 into a tailspin, AMC Theatres
says its plans to release any Universal-backed films are coming to a screeching halt after
the studio announced its record-breaking success with Trolls World Tour.
The head of the American movie theater chain sent NBCUniversal a blistering message after
comments from its CEO Jeff Shell implied the Hollywood studio might be moving forward with
a dual theatrical and at-home release model.
Adam Aron, AMC Theatres' chair-CEO, said in a letter to the studio:
"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."
Nearly all of AMC's 11,000 screens across the globe have gone black, as the world's
largest theater circuit was forced to close locations indefinitely following government-imposed
limits on social gatherings amid the coronavirus pandemic.
While some states are lifting their restrictions in the coming weeks, the nation-wide closures
in March caused studios to push their spring release slate to late summer at the earliest,
leaving theater owners with nothing to screen and little reason to reopen.
But Aron's statement assures that even when they do, the decades-long business relationship
between AMC Theatres and NBCUniversal will have, quote, "sadly come to an end."
"You don't turn your back on family."
Originally geared up for a May 9 theatrical debut, Universal tentpole F9 is among the
growing list of titles delayed due to the ongoing pandemic.
Universal pushed the ninth chapter of its high-octane Fast and Furious franchise by
a whole year to April 2, 2021.
The shift followed earlier comments from star Vin Diesel promising fans that the May 2020
release of F9, which will see the return of fan-favorite character Han, was still on.
Unlike its plan with F9, Universal made the huge decision amid the coronavirus pandemic
to ditch a theatrical release window for Trolls World Tour in favor of a premium video on
demand debut.
It was unclear how successful the gamble would be, but the animated sequel reportedly exceeded
NBCUniversal's expectations, earning an estimated $100 million in the first three weeks of its
North American VOD launch.
Shell told The Wall Street Journal:
"As soon as theaters reopen, we expect to release movies on both formats."
Neither AMC nor NATO, the National Association of Theatre Owners, responded well to Shell's
comment.
After declaring that the policy announcement was, quote, "not some hollow or ill-considered
threat," Aron added that it would apply to anyone considering expanding into a premium
video on demand model.
"Not this time, Dom."
A speedy and pointed response from Universal clarified that Shell's comments on release
window and platform plans had been misunderstood.
According to the studio statement, theatrical releases were never off the table, with NBCUniversal
only planning to do, quote, "PVOD when that distribution outlet makes sense."
The statement reads in part:
"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."
If an agreement between AMC and Universal can't be met between now and when theaters
do reopen, fans may never get to see F9 race into theaters.
In its own follow-up statement, the National Association of Theater Owners challenged Universal's
characterization of theater owners' response as, quote, "a coordinated attempt" at misrepresenting
Shell's quote.
Patrick Corcoran, the group's vice president and CCO, said:
"Unfortunately, Universal has a destructive tendency to both announce decisions affecting
their exhibitor partners without actually consulting with those partners, and now of
making unfounded accusations."
The entire debacle, which took place mostly over a day, highlighted an increasingly tense
relationship between theater owners and movie studios.
Nearly a decade after rental and streaming services practically ended the DVD market,
theater owners are facing declining ticket sales and an expensive ongoing effort to modernize
various elements of the theater-going experience.
Following the closures in March, some Wall Street analysts have even predicted AMC might
be forced to file for Chapter 11 bankruptcy.
Despite its woes, a world where the fantastical action and drama of Dom Toretto's crew never
grace the big screen seems incomprehensible.
For some, so too is the idea that Universal's success with Trolls World Tour's PVOD release
is sustainable.
The movie's $100 million earnings are notable because NBCUniversal was able to achieve that
by charging at-home viewers $19.99 not to buy the film, but merely to rent it for two
days.
But as NATO president and CEO John Fithian said in the organization's response to the
studio, it achieved this during, quote, "unusual circumstances in an unprecedented environment."
He explained:
"Theaters provide a beloved immersive, shared experience that cannot be replicated an experience
that many of the VOD viewers of this film would have participated in had the world not
been sequestered at home, desperate for something new to watch with their families."
It's unclear how this will all turn out, but for the sake of Fast and Furious fans, let's
hope it all blows over in time for the 2021 premiere.
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