Cinemark, much like the rest of its theater chain competition, is struggling. During a recent investors call, where CEO Mark Zoradi revealed the Q3 losses for the company (via Deadline), it appears that the third-largest cinema chain in the US isn’t immune to the disastrous business that is plaguing the theatrical experience right now, as we continue to deal with a surging pandemic. But Zoradi and his company have a new, “dynamic” plan for the future.
According to Zoradi, Cinemark is now adopting dynamic rules when it comes to film exclusivity windows. Pre-pandemic, the norm was that a film from a major studio debuts in a theater, stays there for roughly 70 to 90 days, and then hits VOD and home video. But with AMC making a deal with Universal and other studios skipping theaters altogether and going straight to PVOD, Cinemark has decided to come up with a new plan regarding theatrical exclusivity windows.
Basically, the new plan is that there are no rules for exclusivity. Cinemark will discuss the theatrical window for each movie on a case-by-case basis, figuring out how long each will be. This means, some movies, like the upcoming Universal releases, will not just be in AMC, but will also screen at Cinemark, with a three-weekend exclusivity. Though the quickness of the negotiations probably has a lot to do with COVID-19, the Cinemark CEO said that these are talks that were beginning well before the current pandemic.
“This isn’t new,” Zoradi said. “Clearly, we’re factoring in the current environment.”
As for which films this will affect, the new rules will begin really quickly, as Cinemark announced the chain will be offering films such as “Let Him Go,” “Freaky,” and “The Croods 2,” which debut over the next three subsequent weekends, respectively. Again, it’s important to note that this does differ from the overall deal that AMC struck with Universal earlier this year. Cinemark is doing this on a case-by-case basis and thinks that’s the proper way to handle things in the current climate, whereas AMC and Universal’s deal is for every film from the studio.
Now, with Cinemark being more flexible on theatrical windows, does this mean Netflix and other streaming services can work out something so that those films could get a wider release in the chain? Zoradi said the company is “always open” to considering showing films from Netflix and its streaming brethren, but he said, “It will always come down to the terms.”
Considering Cinemark is the #3 theater chain in the US and AMC has already struck a shortened-window deal with Universal, that just leaves Regal Cinemas (the #2 chain) as the next in line to figure out how to adapt to this new world we live in. Currently, Regal has shut down most of its theaters in the US, minus a handful in California and New York, with no announcement of when they will reopen. So, even with “Let Him Go,” “Freaky,” and “The Croods 2” on the horizon, it doesn’t appear that Regal has any interest in reopening before Thanksgiving…or the end of the year, for that matter.
Naturally, as has been the case with everything pandemic-related, this story is ever-changing. So, remember, don’t write any of these new rules in pen. We’re still in the pencil realm, as erasing and changing is definitely going to be the norm for a while.
