CMCSA Comcast Corporation

By R.T. Watson 

Comcast Corp.'s Universal Pictures said it is making its movies available to watch at home while they are still in theaters, a massive change from Hollywood's long-established business model that could upend the industry if other studios follow suit.

The decision comes amid widespread closures of movie theaters as the global coronavirus pandemic spreads. Authorities in New York City and Los Angeles on Sunday ordered all movie theaters to close; exhibitors had previously said they would limit attendance in theaters to 50% of their capacity. China, the world's second-largest market, has kept tens of thousands of theaters closed since late January.

Major studios typically release new movies exclusively in theaters during a "window" of 75 days in a bid to maintain ticket sales, on the theory that fans are more likely to watch a new movie at home if that is an option. Keeping that strategy in place has long been a priority for theaters, and major studios generally have been reluctant to do away with such windows altogether, even as the lengths of those periods have steadily shortened over the years.

Universal said that by Friday recently released films like "The Invisible Man," "The Hunt" and "Emma" will be available for digital rental for $19.99 in the U.S., or the equivalent value in overseas markets. Paying the rental fee will allow customers 48 hours to watch the movie.

In an even bolder move, Universal also said "Trolls World Tour" will open simultaneously in theaters and at home on April 10.

Universal released "The Hunt" in theaters over the weekend while "The Invisible Man" and "Emma" both came out late last month. Costing just $7 million to make, "The Invisible Man" has already had a successful run in theaters, grossing $122.4 million globally in three weekends.

"Rather than delaying these films or releasing them into a challenged distribution landscape, we wanted to provide an option for people to view these titles in the home," said NBCUniversal Chief Executive Jeff Shell, who has long said he thinks theatrical windows would continue to shrink amid pressure from consumers.

"We hope and believe that people will still go to the movies in theaters where available, but we understand that for people in different areas of the world, that is increasingly becoming less possible," he said.

Comcast's cable-television system also offers movies for rent through on-demand video. The company is also launching its own streaming service, called Peacock, in April. Universal didn't say when these movies would move from on-demand to the new service.

(END) Dow Jones Newswires

March 16, 2020 14:51 ET (18:51 GMT)

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