Trolls, the sequel: AMC (aggressively) strikes back against Universal
Grab the popcorn... Things are getting spicy between AMC Theaters and Comcast's Universal Pictures. Yesterday we talked about the unexpected triumph of the Trolls World Tour movie, and how it could change "movie math" forever:
- Because of theater closures, Universal released its Trolls sequel directly to streaming services, instead of respecting the usual 75-day "theatrical window."
- Universal made more $$$ on 3 weeks of the sequel's online rentals (for $19.99) than it did after 5 months of the original Trolls' theater release (theaters take a bigger cut than streamers).
Who knew Trolls could cause so much drama?... NBCUniversal CEO Jeff Shell was so thrilled with the digital success that he said Universal will release movies in both theaters and digital when theaters reopen. AMC, the world's largest movie theater chain, was not about it (at all) — So its CEO wrote an aggressive open letter:
- Charm: It started with that, with the letter addressed to "Dear Donna" — then it went from passive aggressive to aggressive.
- The Indignation: AMC's CEO called Universal's decision to cut out theaters in the future "categorically unacceptable." So...
- The Strike: "Effective immediately AMC will no longer play any Universal movies" in any of its theaters around the world.
- Plus: "Any movie maker who unilaterally abandons current windowing practices" will be subject to AMC's wrath. Wowza.
Pre-emption is key... AMC struck fast and hard against normalization of the one thing that could destroy its biz forever: digital releases. Movie theaters aren't in the strongest position right now — but they can set expectations ASAP. Regal Cinemas also warned Universal to respect the theatrical window. Now Universal is backtracking, saying it "absolutely" believes in the theatrical experience and AMC misunderstood.