AMC/Universal Deal Creates Loophole for Theater Chains

The watershed deal authorizing Universal to release theatrical films just 17 days after a theater premiere is big - but not too big to fail.

The deal was birthed out of the social distancing requirements that will likely change again and again before 2021. Far fewer people have been able to visit theaters which prompted Disney et al to push their theatrical releases to streaming networks.

But here’s what other theater chains can do to stay in the game:

1. Get busy finding out which movies are still scheduled to be shown in theaters. Pick ones that offer the most compelling big screen experiences.

2. Perfect your “anti Covid”/Social Distancing hygiene routine among staff.

3. Invite a “select audience” (i.e, loyal theaters goers) for a test run. Give out “swag” masks, etc.

4. Create deals with other studios to show limited runs of big screen movies. Impress them with your anti-Covid precautions and “testing” plan that reassure audiences.

Global audiences are restless to experience big screen movies on the big screen once again. People are willing and ready to venture into public areas so long as hygienic guidelines are followed and enforced.

Some theaters opened prematurely without any significant change to how they sanitized the theater or how they planned to keep audiences safely spaced. If theaters adjust correctly, they can bring in revenue again. If they close, the landlord loses, then cities and towns lose by lost property tax revenue so it's better to have a plan than no plan at all or worse revert to "business as usual" pre-Covid. That option is not probable.

The risk is low for studios. Studios can still capitalize by premiering the film in a theater (which they were planning on doing anyway), track how many people come and still get the film to a streaming network. The odds are that more people than anticipated will prefer the big screen experience.

So all is far from lost.

Yes, the AMC/Universal deal is a strong one but I doubt it’s stronger than the desire of audiences to experience a true big screen theater in a well-sanitized theater once again.