The Return of Theatrical Exclusivity

In a move signaling a potential shift in the film industry, AMC Entertainment, led by CEO Adam Aron, has reportedly engaged in discussions with major studios to reinstate a longer exclusive theatrical window. The aim is to ensure films remain in cinemas for a set period before becoming available on video On Demand (VOD) platforms. This progress comes as a response to growing concerns about the diminishing value of the theatrical experience and the rapid transition of films to digital platforms.

45 Days of Darkness… for Streaming Services

The discussions center around a 45-day exclusive theatrical window. Reportedly,three major studios have already agreed to this timeframe,with negotiations ongoing with others. If finalized, this agreement would guarantee that new releases are screened exclusively in theaters for approximately two months before digital distribution begins. This marks a notable change from recent trends,where films have often appeared on streaming services within weeks of their theatrical debut.

Tarantino’s Take: A Director’s Plea for the Big Screen

The potential return to longer theatrical windows has been met with enthusiasm by filmmakers like Quentin Tarantino, who has been vocal about his disappointment with the shrinking theatrical release windows. He has criticized the trend of films bypassing cinemas or having extremely short runs before moving to streaming platforms.

What the hell are movies these days? I’m not entering this industry to get a compensation for this rat tail.
Quentin Tarantino, January 2025

The pandemic’s Impact: A catalyst for Change

The COVID-19 pandemic forced studios to explore alternative revenue streams as cinemas worldwide closed their doors. This led to the shortening of theatrical windows and the acceleration of digital releases. Over the past five years, this trend has intensified, with some films appearing on VOD platforms just weeks after their theatrical premiere. For example, Stephen Soderbergh’s ‘Black Bag’ had a theatrical run of only 17 days before becoming available on demand.

The “Wikid” Example: A Case Study in Digital Revenue

One notable example of this shift is the film ‘Wikid’. Despite a successful run in North American cinemas, Global transitioned the film to VOD after only a month. According to recent data, ‘Wikid’ has generated over $100 million in digital revenue since its release. Unlike theatrical revenue, which is typically split 50:50 with cinemas, digital revenue is retained entirely by the studio. This financial incentive has undoubtedly contributed to the trend of shorter theatrical windows.

Reversing the Course: A Positive Sign for Cinema?

The accelerated shift to digital distribution has arguably diminished the value of the cinematic experience. The potential agreement between AMC and the studios to restore longer theatrical windows suggests a recognition of this issue and a desire to rebalance the scales. Whether this marks a genuine turning point for the industry remains to be seen, but it is undoubtedly a positive development for those who value the magic of the big screen.