Universal Filmed Entertainment Group and AMC Entertainment Announce Agreement for Exhibition of Universal Films
July 28 2020 - 4:30PM
Business Wire
Agreement Based on Commitment to Long-Term
Partnership and Shared Belief in the Importance of Preserving and
Enhancing the Theatrical Experience
Partnership will Increase the Overall Amount
of Movie Watching by Providing Optionality for Audiences
Universal Filmed Entertainment Group (UFEG), a division of
Comcast Corporation (NASDAQ: CMCSA), and AMC Entertainment
Holdings, Inc. (NYSE: AMC) announced today a multi-year agreement
under which UFEG films will be exhibited in AMC Theatres in the
U.S.
The agreement includes at least three weekends (17-days) of
theatrical exclusivity for all Universal Pictures and Focus
Features theatrical releases, at which time the studio will have
the option to make its titles available across premium video on
demand (PVOD) platforms, including through AMC Theatres On Demand.
In the coming weeks, the two companies will begin discussions
surrounding international distribution agreements in the countries
in Europe and the Middle East served by AMC.
Universal’s traditional windows for electronic sell through
(EST) and video on demand (VOD) remain unchanged. The companies
reached this agreement based on their shared commitment to a
mutually beneficial long-term partnership that is focused on
serving consumers worldwide, while preserving and enhancing the
theatrical experience.
Said Donna Langley, Chairman, UFEG, “The theatrical experience
continues to be the cornerstone of our business. The partnership
we’ve forged with AMC is driven by our collective desire to ensure
a thriving future for the film distribution ecosystem and to meet
consumer demand with flexibility and optionality.”
Vice Chairman and Chief Distribution Officer of UFEG Peter
Levinsohn, who led negotiations on behalf of the studio, added,
“Universal’s commitment to innovation in how we deliver content to
audiences is what our artists, partners and shareholders all expect
of us, and we are excited about the opportunity this new structure
presents to grow our business. We are grateful to AMC for their
partnership and the leadership they have shown in working with us
to reach this historic deal.”
Commenting on the agreement, AMC CEO Adam Aron said, “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. This
multi-year agreement preserves exclusivity for theatrical viewing
for at least the first three weekends of a film’s release, during
which time a considerable majority of a movie’s theatrical box
office revenue typically is generated. AMC will also share in these
new revenue streams that will come to the movie ecosystem from
premium video on demand. So, in total, Universal and AMC each
believe this will expand the market and benefit us all. Focusing on
the long-term health of our industry, we would note that just as
restaurants have thrived even though every home has a kitchen, AMC
is highly confident that moviegoers will come to our theatres in
huge numbers in a post-pandemic world. As people enjoy getting out
of their homes, we believe the mystical escape and magical communal
experience offered at our theatres will always be a compelling
draw, including as it does our big screens, big sound and big seats
not to mention the alluring aroma of our perfectly prepared
popcorn. Universal and AMC have partnered in bringing stellar
movies to moviegoers for a full century. With this historic
industry changing agreement, together we will continue to do so and
in a way that should drive success for us both.”
The full terms of the deal are confidential and are not being
disclosed.
UFEG is working with AMC and other exhibition partners on plans
to restart theatrical releases with a dynamic slate of films as
diverse as the audiences who embrace them from Universal Pictures,
Focus Features and DreamWorks Animation, including upcoming
installments in the blockbuster Fast & Furious, Jurassic World
and Illumination’s Despicable Me/Minions franchises, among other
highly-anticipated titles.
About Universal Filmed Entertainment
Group
Universal Filmed Entertainment Group (UFEG) produces, acquires,
markets and distributes filmed entertainment worldwide in various
media formats for theatrical, home entertainment, television and
other distribution platforms. The global division includes
Universal Pictures, Focus Features, Universal Pictures Home
Entertainment, DreamWorks Animation Film and Television. UFEG is
part of NBCUniversal, one of the world’s leading media and
entertainment companies in the development, production and
marketing of entertainment, news and information to a global
audience. NBCUniversal owns and operates a valuable portfolio of
news and entertainment networks, a premier motion picture company,
significant television production operations, a leading television
stations group, world-renowned theme parks and a suite of leading
Internet-based businesses. NBCUniversal is a subsidiary of Comcast
Corporation.
About AMC Entertainment Holdings,
Inc.
AMC is the largest movie exhibition company in the United
States, the largest in Europe and the largest throughout the world
with approximately 1,000 theatres and 11,000 screens across the
globe. AMC has propelled innovation in the exhibition industry by:
deploying its Signature power-recliner seats; delivering enhanced
food and beverage choices; generating greater guest engagement
through its loyalty and subscription programs, web site and mobile
apps; offering premium large format experiences and playing a wide
variety of content including the latest Hollywood releases and
independent programming. AMC operates among the most productive
theatres in the United States' top markets, having the #1 or #2
market share positions in 21 of the 25 largest metropolitan areas
of the United States. AMC is also #1 or #2 in market share in 9 of
the 15 countries it serves in North America, Europe and the Middle
East. For more information, visit www.amctheatres.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200728005973/en/
Universal Filmed Entertainment Group Evan Langweiler
818.777.9709 evan.langweiler@nbcuni.com
AMC Entertainment Ryan Noonan 913.213.2183
rnoonan@amctheatres.com
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