[CNBC Television] AMC bans Universal films in its theaters after studio goes digital with latest ’Trolls’ release
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CNBC’s Julia Boorstin reports on AMC’s decision to ban Universal movies in its theaters.
With more people stuck at home during the coronavirus pandemic, streaming services like Netflix are seeing massive growth.
On Tuesday, Netflix said it added 15 million new subscribers to its platform in the first quarter, bringing its total number of global customers to 183 million. Tens of millions of these viewers watched Netflix original movies like “Spenser Confidential” and the hit documentary series “Tiger King,” leading many to question why studios aren’t releasing films that were meant for cinemas on the small screen.
After all, movie theaters are expected to be closed until at least mid-June.
But, it’s not that simple. Streams aren’t the same thing as movie tickets.
For $15 a month, Netflix customers can watch whatever they want on the platform. They don’t have to pay per view. So, if a studio releases a movie straight to a streaming service, whether it be Netflix, Disney , Amazon or Hulu, it’s not going to make money on that specific title. It only makes money on the subscription fee.
It’s why movies like “Trolls World Tour,” which skipped its theatrical release in the wake of Covid-19, are being sold on demand. Here studios can at least get paid for someone to purchase the movie or for someone to rent it for 24 hours. But this method still isn’t as lucrative as opening a blockbuster at a movie theater.
With the closure of theaters across the country, studios are being forced to make tough decisions about which movies will be delayed and which will be sent to streaming and on-demand platforms.
However, only a handful of releases that were intended for theaters have opted to depart a theatrical release entirely. The majority of Hollywood films have pushed to late 2020 or found a new home in 2021, still seeking a piece of the $42.5 billion global film industry.
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