Movie Theaters Start Losing Exclusive ‘Window’ From Studios

 The Coronavirus Pandemic may upend the decades-old business model of U.S. movie theaters, which gives them an exclusive 90-day window to show films before they are made available to other distribution channels such as streaming services.

 Comcast’s NBCUniversal yesterday announced that it would make movies available in people’s homes and in theaters at the same time. 

The change starts with the April 10 U.S. release of DreamWorks Animation’s Trolls World Tour “as current circumstances have made it challenging to view our films,” according to NBCUniversal.

 Movies that are currently in theatrical release from the company’s Universal Studios and Focus Features divisions, including The Hunt, The Invisible Man, and Emma, will be available for a suggested retail price of $19.99 for a 48-hour rental period as early as March 20.

“Rather than delaying these films or releasing them into a challenged distribution landscape, we wanted to provide an option for people to view these titles in the home that is both accessible and affordable,” NBCUniversal CEO Jeff Shell said in a press release. “We hope and believe that people will still go to the movies in theaters where available, but we understand that for people in different areas of the world that is increasingly becoming less possible.”

 Last week, Walt Disney released Frozen 2 on its DisneyPlus streaming service several months earlier than expected. With more than $1 billion in worldwide ket sales, the film is the highest-grossing animated movie of all time.

 Government officials have ordered most U.S. movie theaters, including ones owned by the top three operators — AMC, Regal, and Cinemark — to shut down to stem the spread of Coronavirus.

“Although there has been speculation in the media that the temporary closure of theaters will lead to accelerated or exclusive releases of theatrical titles to home streaming, such speculation ignores the underlying financial logic of studio investment in theatrical titles,” according to the National Association of Theater Owners (NATO), a trade group.

The statement continues: “To avoid catastrophic losses to the studios, these titles must have the fullest possible theatrical release around the world. While one or two releases may forgo theatrical release, it is our understanding from discussions with distributors that the vast majority of deferred releases will be rescheduled for theatrical release as life returns to normal.”

 Of course, that’s easier said than done.

The Coronavirus Pandemic, which has killed nearly 8,000 people around the world, has hit the entertainment industry hard. Movies and television shows have stopped filming. Music festivals like South by Southwest have been called off while Broadway has gone dark. 

“Early estimates indicate that the blow will be unlike anything Hollywood has experienced before and losses will well eclipse the eleven-figure mark, even if conditions remain the same instead of taking a turn for the worse,” according to the The Hollywood Reporter,

Indeed, the trade publication notes that box office revenue is down by at least $7 billion and would plunge another $10 billion if the remainder of March, April, and May are included. It added, “if the crisis continues beyond May, all bets are off.”