LOS ANGELES: AT&T Inc’s Warner Bros studio will debut all of its 2021 movies in theaters and on the HBO Max streaming service on the identical day, the corporate stated on Tuesday, an unprecedented shift that hammered shares of struggling cinema operators.
The motion pictures, that are anticipated to incorporate “Godzilla vs. Kong” and “The Suicide Squad,” shall be out there on HBO Max for one month beginning on the identical day they hit theaters, the studio stated in an announcement.
“Mortal Kombat,” a brand new model of “Dune” and a “Matrix” sequel are also scheduled to comply with the brand new launch sample.
Shares of AMC Entertainment, the world’s largest theater operator fell virtually 16%, and rival Cinemark dropped about 22%. AT&T shares closed up barely.
The change, led by WarnerMedia CEO Jason Kilar, was essentially the most aggressive transfer up to now to carry motion pictures into houses sooner, and it despatched a shock throughout Hollywood. Theaters have lengthy resisted makes an attempt by studios to shorten the time that cinemas can supply new motion pictures completely.
Kilar, a former Amazon.com Inc government and the founding CEO of Hulu, took over AT&T’s media division in May and has restructured companies to concentrate on HBO Max, the corporate’s new competitor to Netflix Inc.
“We know new content is the lifeblood of theatrical exhibition, but we have to balance this with the reality that most theaters in the U.S. will likely operate at reduced capacity throughout 2021,” stated Ann Sarnoff, chair and CEO of WarnerMedia Studios and Networks Group.
For customers, watching at house might price lower than a visit to the theater. HBO Max prices $15 a month, whereas the common price of two film tickets within the United States reached $18.32 in 2019, in keeping with the National Association of Theatre Owners.
A Cinemark consultant stated in an announcement that Warner Bros had not shared particulars of its new distribution plan.
“In light of the current operating environment, we are making near-term booking decisions on a film-by-film basis,” the assertion stated.
Other theater operators didn’t instantly reply to requests for remark.
Theater chains have been devastated by the pandemic and have been compelled to put off staff and borrow funds to remain afloat. Smaller chains are lobbying for emergency assist from the U.S. authorities.
Cinemark and AMC additionally reached agreements with Comcast Corp’s Universal Pictures to indicate movies that shall be made out there for house viewing as quickly as 17 days after they attain theaters.
Walt Disney Co has moved just a few motion pictures from theaters to its Disney+ streaming service. The firm is anticipated to unveil particulars about its streaming plans on Dec. 11.