AMC Theatres delivered a blistering message to Universal Pictures late Tuesday, 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.
"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 dispatched later on Tuesday, 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 said in the letter.
"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. 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."
Continuing, Aron said: "Universal’s unilateral pronouncements on this issue are unpalatable to us, as has always been the case, AMC is willing to sit down with Universal to discuss different windows strategies and different economic models between your company and ours. However, in the absence of such discussions, and an acceptable conclusion thereto, our decades of incredibly successful business activity together has sadly come to an end."