5 Reasons AMC Made a Deal With Universal
Last month, AMC Entertainment (NYSE: AMC) inked a new deal with Comcast's (NASDAQ: CMCSA) Universal Studios, marking a drastic change of course for the theater owner. The new distribution agreement allows Universal to take its films to premium video on demand (PVOD) home distribution channels just 17 days after their theatrical debut.
AMC wouldn't budge on the three-month exclusive window for years, and now it's offering terms that give it just three weekends. But in light of the COVID-19 pandemic and other industry trends, AMC was the first theater chain to work with studios to offer a better distribution agreement for today's environment.
During AMC's second-quarter earnings call, CEO Adam Aron discussed why the company made the deal with Universal and its hopes to ink similar deals with other studios.
Source Fool.com
