AMC Theatres CEO Adam Aron is the newest addition to the controversial debate about whether the decreased duration of movies’ respective theatrical runs should make way for their OTT releases.
Aron, the CEO of the US’s largest exhibitor, said that there is a “very live debate right now” regarding cinema exclusivity windows. Moreover, he, along with other exhibitors, would “like to convince all the major studios that they should keep movies in theatres longer.”
The gap between a movie’s theatrical release and its digital/home video release was nearly six to eight months for VHS before the arrival of DVDs. The launch of DVD/Blu-ray discs shortened this gap to nearly three months or 90 days.
Amidst the COVID-19 pandemic, Disney+ (now merged into JioHotstar for Indian viewers) was one of the first streamers to follow the 45-day exclusive theatrical window launched by Disney.
However, this gap has shortened even further, with Universal releasing some of its recent movie titles under a 17- to 30-day gap via PVOD. This strategy could influence other OTT players as well, as it would send flop projects directly to the streaming world sooner than expected.
Aron from AMC Theatres is looking to increase the theatrical window for movies to 45 days, and then further extend it to 60 to 74 days. This move could bring a massive number of viewers into theatres. But again, it all comes down to the quality of a project—if it turns out bad, people won’t waste their money in theatres.
For instance, Varun Dhawan’s Baby John flopped hard at the Indian box office, earning only 56–59 crores against its mammoth 100-crore budget. This scenario forced the makers to drop it on Prime Video (February 19) within nearly a month of its theatrical release (December 25, 2024).
However, the phenomenon of frontloaded box office returns took India by storm after the release of Allu Arjun’s Pushpa 2: The Rule. This project from Sukumar entered the 500-crore mark on its third day of theatrical run.
Within a week, this masala extravaganza crossed over 1,000 crores, representing nearly 60% of the movie’s lifetime collection. Some of the latest Hindi releases, like Singham Again and Bhool Bhulaiyaa 3, also followed a similar pattern during their respective theatrical runs.
This ultimately inspires movie distributors to give their big-budget hits an early OTT release to take advantage of the projects’ hype among the audience, potentially leading to substantial viewership.
In India, blockbuster hits, while driving initial theatre attendance, are increasingly being released early on streaming platforms to capitalise on their hype. Conversely, box office flops are rapidly moving to streaming, deterring theatre visits for uncertain films.
This shift impacts theatre viability, as audiences may opt for home viewing. The debate centers on balancing theatrical revenue with streaming’s convenience. The future of cinema hinges on resolving this conflict, potentially through negotiated windows or hybrid release models. The quality of films will also be crucial in drawing audiences to theatres. Stay tuned for more updates.
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