Does Universal Pictures and AMC's deal mean movies will stream online earlier than before?

On Tuesday, July 28, AMC theatres, one of the largest theatre chains in the United States, in an official statement revealed that they struck a multi-year deal with Hollywood studio Universal Pictures. According to the deal, AMC Theatres holds at least three weekends (17 days) of exclusive theatrical rights of screening a Universal Pictures films. After this, the film would release on online platforms like Amazon Prime, Netflix, among others. 

So, according to the statement, Universal Pictures movies would release on OTT quicker than before. According to reports, initially, there was a 90-day gap between a Hollywood movie's theatrical and digital release. However, with Universal Pictures and AMC Theatres' new deal, the gap has shortened to 17 days. 

Also Read | 'Jurassic World: Dominion' Will Not Halt Production Again, Clarifies The Studio

Also Read | 'Jurassic World 3' Production Halt Helped The Film, Says Director Colin Trevorrow

Does this mean big-budgeted Hollywood movies would release online earlier than before? 

According to reports, the deal between the Hollywood studio and theatres would not hamper the business of big-budgeted movies. Reportedly, Universal Studios would increase the gap between the theatrical release and digital release for its big-budgeted films like Jurrasic Park franchise and others, since big-budgeted movies earn more through theatrical release. Also, the first few weeks box office collection of many big films does not even cover the production cost. Meanwhile, many theatre owners have expressed disappointment over Universal Pictures and AMC Theatres' new deal, with many saying it would persuade other studios to do the same. 

Also Read | John Saxon's Death: Know All About The Illustrious Life Of The 'Enter The Dragon' Actor

How Universal Pictures and AMC theatres deal catapulted  

A few days ago, media reports stated that there is a tiff between Universal Pictures and AMC Theatres over former's movie Trolls: World Tour's direct OTT release. AMC Theatres reportedly threatened to ban all Universal Pictures films from their theatre chains henceforth. However, the new deal seems to reap benefits for AMC theatres. According to reports, Universal Pictures will share a sizeable profit gained through digital release with AMC Theatres in lieu of reducing the gap between the theatrical and online release of a film. 

Also Read | 'Candyman' Pushed To October, 'Halloween Kills' And 'The Forever Purge' Delayed By A Year

The Universal Pictures and AMC theatres' current deal is presently developed for the US film market. However, according to several media reports, Universal Films and AMC theatres are planning to expand it to Europe and other parts of the world. In a recent media interview with an online portal, Donna Langley, chairman of Universal Filmed Entertainment Group, said the decision to reduce the gap between the theatrical and online release of Hollywood movies was decided to meet the audience's demand for flexibility. And also to support the theatre business.