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    MAY 6, 2020 >> COVID-19 ALERT COVID-19 May Lead to Permanent Changes to Theatrical Film Distribution THE BOTTOM LINE With movie theaters across the country shut down, film distribution has >> Universal Picture’s move to radically changed during the COVID-19 crisis. bypass theatrical distribution Last week brought the first indication that some of these changes may outlast the acute with Trolls World Tour has the public health situation. potential to fundamentally shift the film distribution model. TROLLS WORLD TOUR STAYS HOME >> As Universal and other studios In the wake of the successful April 10 Video-On-Demand premiere of Trolls World Tour, look to compress or eliminate Universal Pictures announced on April 28 that, in the future, the studio would release films the exclusive theatrical simultaneously in theaters and on demand (VOD). Universal did not specify how many of distribution window, parties its films would get a simultaneous theatrical and VOD release, but the message was clear throughout the entertainment — the industry is about to change. industry will need to rethink negotiation strategies for a The elimination of the exclusive theatrical release window would represent a seismic variety of new and evolving shift in how films are distributed. In response to this threat to its business, AMC Theatres deal points. quickly announced that it would no longer exhibit any film released by Universal. Since the advent of the VHS cassette, film distributors and exhibitors have fought over the length of the exclusive theatrical window. Currently, the theatrical window for major studio films is about 75 days before digital sell-through begins and 90 days before DVD sales and digital rentals.
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