A study conducted by Ampere reveals that premium VOD offers fewer benefits than a limited cinema release strategy. According to the analyst, the pandemic's negative impact on cinema box office revenue will likely accelerate the shift towards movie windowing models.
Universal’s titles may now be distributed through PVOD as early as 17 days following their debut in AMC’s cinemas, which could reflect a template for other studio groups to follow. The analyst noted that the presence of theatrical releases still offers consumers the opportunity to view the movie with a cinema experience. Therefore, tarasnaction losses aren't likely.
Under the deal, Universal’s titles may now be distributed through PVOD 17 days following their debut in AMC’s cinemas. Ampere discovered a model in which PVOD would replace the theatrical model in its entirety, such as was the case with “Mulan” and Universal’s “Trolls World Tour,” would be riskier. “Most of the studios have been experimenting with strategies during lockdown that completely eschews the theatrical window," Ampere Analysis Analyst,Peter Ingram said. "However, despite the change we are expecting to the cinema market, theatrical remains one of the best revenue streams for titles throughout their life cycle.”
The analyst also considered the varying consequences of four new windowing strategies, which include replacing first window theatrical distribution with Premium Video on Demand use PVOD and theatrical windows sequentially, as Universal did in its recent deal with AMC, or replace traditional windowing with a pure direct-to-consumer offering, and release films theatrically before making titles available exclusively on homegrown direct-to-consumer services.
For the post-pandemic market, Ampere found that an accelerated PVOD window, like the deal Universal and AMC have recently agreed, is the most stable for exhibitors and studio groups, offering comparable returns for cinemas and increased revenue for the studio on mid- and lower-tier releases. The analyst believes some of the major studios will adopt split strategies that can utilize PVOD while maintaining the benefits of theatrical distribution.
Most of the studios have been experimenting with strategies during lockdown that completely eschews the theatrical window. However, despite the change we are expecting to the cinema market, theatrical remains one of the best revenue streams for titles throughout their life cycle.” Peter Ingram Ampere Analysis Analyst
Related News
