Uncertainty over the recovery of the COVID-19 recovery led the studio to release films simultaneously in theaters and on streaming, but could these moving habits change forever?
Warner’s announcement includes blockbusters such as the DC films “The Suicide Squad”, the sci-fi remake “Dune” and “The Matrix” – and weeks after the studio announced a day-and-day Christmas Day release for “Wonder”. is coming. Woman 1984 ”who had already warned
“The most surprising thing about this move is that it was created just before we saw how the ‘Wonder Woman’ experiment works,” said Shannon Robbins, an analyst at OffshoreFish. “But I also think this is a way to hedge their claim. What if the vaccine is not readily available until next summer, even though we have a rough timeline, or if they are and people continue to wait and it takes more than six months for some degree to return to normal? ”
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Indeed, Schiffer said AT&T’s move is a clear indication that “they don’t think people will return to theaters anytime soon.”
Insiders at the studio told Theprep that there are concerns in the studio about the distribution of the COVID-19 vaccine in particular and whether the rollout will allow the U.S. to achieve mob immunity by the middle of the year. On Thursday, the Centers for Disease Control approved distribution plans for the first wave of Pfizer vaccines, and states like California have announced priority lists for first responders and healthcare workers with the goal of receiving these vaccines later this month. Ordinary people in Q2 of 2021.
Warner’s 2021 slate features four-quarters of live- / action / CG “Tom and Jerry” reboot hit theaters in early March, and the studio sees HBO Max as an opportunity to maintain current release dates without worrying about how many states have approved. Theaters reopen or how much capacity they allow. At the same time, theaters that reopen, especially in smaller markets, will have on-screen movies, without worrying about COVID-related delays.
“No film wants to come back on a bigger screen than us. We know that new content is the lifeblood of theatrical performances, but we have to balance this with the truth that most theaters in the U.S. will likely operate at low capacity during 2021. Sarnoff said in a statement. “With this unique one-year plan, we can support our partners in the exhibition[…] While also giving moviegoers who do not have access to theaters or are not ready to go back to the movies to see our amazing 2021 movies. ”
Tentpoles like the studio “Wonder Woman 1984” are unlikely to make as much profit from primarily digital publishing – which costs 200 200 million and marketing that costs the least – but the company is clearly counting on the benefits of the momentum. HBO Max subscriptions to compete more directly with big competitors like Netflix and Disney +.
Yet, it is a big blow to the theaters that have been wiped out by the epidemic. While people inside the studio say they were approaching big performers like AMC theaters before the announcement, the HBO Max will be a major stress point in the coming months. Shares of the already announced theaters have plunged into shell-shocked share prices, with AMC falling 1.06 per share to ૦ .6363.16 per share on Thursday, down 1%% while Cinemark fell 22% to 17.30.22 to 13.30 per liter. Is.
Also read: Warner Bros. will release all 2021 movies simultaneously in theaters and on HBO Max
If theaters still have screenings of Warner films, no exhibitor is expected to compete with the home as well as the release. AMC, the country’s largest chain and vocal opponent of day-to-day releases, announces “urgent” talks with Warner Bros. to renegotiate the studio’s terms for 2021 films. “We will aggressively adhere to the economic conditions that sustain our business,” AMC CEO Adam Arrow said in a statement Thursday.
“This coronavirus is at its peak at the time of the outbreak … when the epidemic appears,” Aaron said, adding that she agreed to the “Wonder Woman 1984” arrangement, assuming it was a one-time deal. “However, now that Warner hopes to do this for all his 2021 theatrical movies, despite the possibility, the theater business is expected to return with a vaccine around the corner.”
AMC and other chains recently struck a deal with Universal while allowing the studio to stream films on demand 17 days after its success in theaters, also guaranteeing 31 days of exclusivity if the deal opens for more than 50 50 million. NBC Universal’s newest streaming service, Peacock, has not yet focused on the core content of Netflix, Disney + and now HBO Max, as the company is experimenting with PVOD for a home release following the success of “Trolls World Tour” last spring.
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One thing that is certain is that the traditional 90-day window between launching a film in theaters and debuting for a digital at-home release is dead and gone. For a decade exhibitors resisted any rest in that particular period – but the epidemic reinforced their lack of benefit.
Still, the theater prefers an arrangement with a chain that allows Some Uniqueness. Robbins said he expects AMC to try to adjust Warner’s plan to fit some version of its HBO Max deal. “I think it will run the same as what happened with Universal and AMC earlier this year and Cooler Head will win,” he said. “There has to be some kind of compromise because the epidemic has to be ready to play ball between both the studio and the performers.”
Whatever happens, AMC and other theaters will need to move quickly. As music streaming services such as Spotify have proven, digital platforms can change the way consumers use their habits.
This is especially true based on how other studios reacted to Warner’s move. Disney did not respond to requests for comment on its release plans, but Robbins believes the studio will move additional films from theatrical releases to the premiere of its Disney + streaming service, with an announcement coming early Thursday during the company’s Investor Day.
“Now that Warner Bros. has taken a step beyond Universal, Disney may think they’re going to take it a step further,” he said, suggesting that one of Disney animation’s “opinions and the last dragon” is currently being worked out. A March release.
“It’s a stressful time for theaters because we’re talking about the biggest films that are being prepared to bring audiences back into conflict theaters,” he said. “Everyone in the industry needs to remember that everything is changing in this epidemic and we have no idea that everything will look like six months from now, and we just need to see this move. A much shorter term than we used to. “
Beatrice Verhoeven contributed to this story.
