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It’s Time to Stop Protecting Movie Theaters

5/3/2020

 
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​NBCUniversal CEO Jeff Shell recently praised the digital-only release of their new animated movie Trolls World Tour stating that it brought in nearly $100 million in revenue online. NBCUniversal was so pleased with the results that that they plan to start dual movie releases simultaneous to both theaters and online when theaters open back up. This triggered AMC Theaters to announce a boycott of NBCUniversal.
“It is disappointing to us, but Jeff’s comments as to Universal’s unilateral actions and intentions have left us with no choice,” Aron wrote. “Therefore, effectively immediately AMC will no longer play any Universal movies in any of our theaters in the United States, Europe or the Middle East. This policy affects any and all Universal movies per se, goes into effect today and as our theaters reopen, and is not some hollow or ill-considered threat.”AMC Theaters is the largest cinema chain in the US, and losing access to its theaters is a devastating blow for Universal’s biggest upcoming films, including F9. — The Verge, 4/28/20

The comments from AMC CEO Adam Aron have officially turned me anti-theater. 

I don’t like going to the movie theaters for a myriad of reasons. I hate waiting in lines, sitting in noisy crowds, and having my feet stick to the floor. But that alone wouldn’t turn me into an anti-theater activist. 

I’m starting to realize that movie theaters are protecting a monopoly on first-run movies and are targeting studios that get out of line.  These are not freedom loving capitalist businesses that are trying to ensure their future security by offering a better product. These are Stalinist tactics meant to protect an obsolete business that most people don’t want any more. 

Movie theaters are a relic of a time gone by. A time when most people didn’t own a television. They’ve survived this long by their anti-capitalist monopoly hold on movie content. I say, no more. Let them live or die on their own merit and compete alongside all channels of distribution.

By far, the largest group of movie theater enthusiasts are 16-24 years old. As a result, this group has an outsized influence on the kind of movies that are created. Do we really want to keep watching movies that target a 16 year old’s sense of humor?

Theaters are actively infringing on how I like to get my entertainment, online streaming. That crosses the line. I say, offer movie content to both theaters and online streamers simultaneously and let the market decide. Because enforcing a theater-first policy is bad for everyone, except movie theaters. 

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    Robert Perez

    Manufacturing and distribution analysis since 1993.

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