AMC Theatres Interested in PVOD on Its Terms8 May, 2017 By: Erik Gruenwedel
AMC Entertainment, the nationwide theater chain owned by the Chinese Wanda Group, is willing to entertain a shorter theatrical window and premium video-on-demand in the home so long as it is beneficial financially, CEO Adam Aron told analysts.
Speaking on a May 8 fiscal call, Aron said he continues to be intrigued by industry discussions with studios about enabling consumers to access new theatrical movies in the home at a premium price.
He said he agreed with Warner Bros. CEO Kevin Tsujihara’s recent comments that working together on the PVOD can be fiscally advantageous to all parties.
At the same time, Aron reiterated that AMC would not cave to studio pressure to renegotiate a longstanding theatrical window granting exhibitors exclusive access to new movies for more than 90 days due to changing consumer consumption habits of video entertainment.
Indeed, thanks to its acquisition of Carmike Cinemas, which includes nearly 3,000 screens in 41 states, AMC saw Q1 revenue grow 67% to $1.28 billion compared with the previous-year period.
“If we cannot forge an agreement on a new window that advances our interests, we'll take any and all necessary actions to vigorously protect the long-term interest of AMC and those of our shareholders,” Aron said. “Fortunately though, we have a seat at this table.”