US Markets
AMC

AMC Theatres, Universal reach deal to bring new movies to homes earlier

Credit: REUTERS/BRENDAN MCDERMID

AMC Theatres and Comcast Corp's Universal Pictures agreed to a major shift that will allow the studio's movies to be made available to U.S. audiences at home after just three weekends in cinemas, the companies announced on Tuesday.

LOS ANGELES, July 28 (Reuters) - AMC Theatres AMC.N and Comcast Corp's CMCSA.O Universal Pictures agreed to a major shift that will allow the studio's movies to be made available to U.S. audiences at home after just three weekends in cinemas, the companies announced on Tuesday.

AMC, the world's largest movie theater chain, will receive a portion of the revenue that Universal generates from "premium video-on-demand" sales during the first weeks a film is offered to at-home viewers.

Financial details, including the price for early home viewing, were not disclosed.

Studios have been pushing to make their movies available in homes sooner than the typical timeline of roughly 90 days. Theaters have long resisted that idea, and the standoff had prompted AMC to say earlier this year it would no longer show Universal films in its cinemas.

"AMC enthusiastically embraces this new industry model both because we are participating in the entirety of the economics of the new structure, and because premium video-on-demand creates the added potential for increased movie studio profitability, which should in turn lead to the green-lighting of more theatrical movies," AMC's chief executive, Adam Aron, said in a statement.

Universal distributes the "Fast & Furious" and "Despicable Me" franchises, among other films.

(Reporting by Lisa Richwine; Editing by Leslie Adler)

((lisa.richwine@thomsonreuters.com; Follow me on Twitter @LARichwine; 1-424-434-7324; Reuters Messaging: lisa.richwine.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AMC CMCSA

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More