All sides are resigned to the fact that each Hollywood major is trying different launch models as long as the pandemic continues.
On March 23, Hollywood studio executives woke up with the headlines that UK mega-producer Cineworld, owner of Regal Cinemas in the United States – will begin opening selected Regal locations early next month.
Regal, the country’s second largest network behind AMC Theaters, with 536 cinemas in the United States, had been closed for six months. More good news came with word from local officials that Los Angeles may be among a handful of counties where newly opened cinemas may increase capacity from 25% to 50% in the next few days. (LA is the country’s largest cinema market and the key to studios getting back on track.)
At noon, however, clouds of doubt rolled over when Disney announced it was delaying Marvel Studios. Black Widow again, along with five other films. Black Widow changes from May 7 to July 8; to start, the superhero spinoff will be made available to Disney + subscribers for a $ 30 Premier access fee. And while the pillar of Memorial Day Cruella is maintaining its theatrical release date on May 28, it will also premiere simultaneously on Premier Access.
Publicly, there was no turmoil among cinema owners, or a severe reaction from Wall Street. All sides are resigned to the fact that each Hollywood studio will experiment with different release models as long as the pandemic continues. And while the scenario may be improving in the United States, where cinemas have finally reopened in Los Angeles and New York, Europe remains in crisis. It is also possible that large entertainment conglomerates are being informed about the long-term implications of the pandemic and need to “protect their bets”, as a film financier said. The Hollywood Reporter.
“Black Widow it is an expensive film. It is not surprising that they are postponing the date, “says Wall Street analyst Eric Handler of MKM Partners.” Disney is not comfortable launching a movie worth more than $ 200 million when there is so much uncertainty. “
Handler and others believe Disney is using the pandemic era to test its appetite for premium video on demand. Black Widow and Cruella provide unique opportunities. “This year is all about experimentation,” he says. “Disney is not abandoning the exhibitors.”
Disney also offered Mulan and Raya and the Last Dragon for Disney + subscribers for $ 30, but Black Widow it is the first superhero photo to try its luck on premium on-demand video in countries where the streaming service is available.
Analysts believe that theater networks can not stop playing Cruella or Black Widow. However, exhibitors like Cinemark and Harkins, both based in the United States, currently refuse to play at Disney’s Raya and the Last Dragon because the chains wanted better terms than normal, since Raya is also playing at Disney +.
According to several sources, Warner Bros. is offering more generous terms for theater circuits – or more than 55% of each ticket sold – that are displaying their 2021 slate in exchange for a day and release date on HBO Max. Disney, however, has not done the same until now.
Disney delayed a total of six films this week; four remain on this year’s calendar, while two advance to 2022, including Death on the Nile, which stars the tormented actor Armie Hammer.
Disney’s Black Widow the change sparked speculation as to the fate of other pillars supporting early summer. Paramount’s A peaceful place, part II is scheduled to open on Memorial Day weekend on May 28 and Universal will unveil F9, the next installment in the Fast and furious franchise on June 25th. Sources say THR that there are no plans at the moment to move any movie or project a double release to the big screen.
In pre-pandemic times, cinema owners had the power to stop even the biggest Hollywood studio from sending a film home before three months or more. Everything changed when the new coronavirus virus attacked in early 2020, forcing the closure of theaters around the world.
A year ago, when the tent was getting dark, exhibitors were outraged when Universal announced in the spring of 2020 that it was shipping Trolls World Tour for $ 20 premium video on demand. In mid-summer, outrage turned to acquiescence when Universal struck a historic deal with AMC to create a new premium VOD window, starting 17 days after the first title hits the big screen. . This model was followed by an agreement with Cinemark to create a 31-day window for the title to reach a certain limit on the opening weekend.
Tensions increased again when WarnerMedia, home of HBO Max, announced without warning that Warner Bros. ‘the entire list of 2021 films would premiere on the day and date in theaters and on the streaming service. Directors and stars were furious, prompting Warner chiefs to say the decree would end after 2021. This week, the company confirmed that promise by saying it agreed to provide Regal with an exclusive 45-day showcase for its titles in the United States. United States and 31 days in the United Kingdom Paramount has indicated that it believes in a 45-day window for its films.
Although there hasn’t been the same intense anger expressed about Disney Black Widow or Cruella decision, experts say that many cinema owners were not exactly happy. However, they understand that each studio is following a different model, especially during the great arms race. “There’s not much that cinemas can do,” says Handler.
“Everyone has made their big moves. Companies will look at what works and then there will be more sizing right,” says a veteran of the studio. Another studio distributor adds: “There will be no more standardized approach and each film will be treated differently.”
In his note to investors, Wall Street analyst Eric Wold of B. Riley Securities said that Disney’s daily test Black Widow, a well-known IP, will provide Goliath entertainment with “valuable data on film demand for both sides of the table, which would influence future decisions”.
Another source speculates that Disney wants to protect its bets if Europe remains blocked, while the US imposes new restrictions; Disney is experiencing the day-to-day economy; Disney expects recurring closures for years, until most of the world is vaccinated.
“The pandemic is still causing massive display problems,” adds the source. “We will not see any images being released on more than 35,000 screens anytime soon.”