Paramount Pictures announced the deal with two major cinema chains to speed up the home release of movies. The deal is to make new films available to watch at home just about two weeks after they leave most of the theaters. Read on for more details.
The Wall Street Journal reported the Viacom Inc.-owned Hollywood studio has collaborated with AMC Entertainment Holdings Inc. and Canada’s Cineplex Inc., the two of North America’s largest exhibitors.
The source also wrote that Paramount will “share a portion of revenue from iTunes downloads, video-on-demand, and other digital channels,” with the exhibitors that play the movies.
Rob Moore, the Vice Chairman of Paramount Pictures, said that the studio presently has deals only with Cineplex and AMC. It was said they are more flexible on release dates when compared to other competitors. He also said that the same terms would be applicable to other theater chains.
He also added that the studio would release the movies with just those two major cinema chains even if “no other exhibitors agree to the new terms.”
The Paramount Pictures plans to begin the new arrangement with two smaller movies. However, the studio “hopes to continue with the strategy, potentially changing the calculus of movie distribution for studios and exhibitors alike,” reported the source.
The deal involves two inexpensive films – “Paranormal Activity: The Ghost Dimension” and “Scout’s Guide to the Zombie Apocalypse.” The studio would make the strategy as the standard for all its upcoming movies. The source further reported that the studio releases the big-budget movies such as “Star Trek,” “Mission: Impossible” and “Transformers” franchises.
“Our expectation is that total revenue will rise and the theatrical revenue will be relatively unaffected, if at all,” said Rob.
According to TwinCities.com, Paramount Pictures would implement the new arrangement for all new releases from the later part of this year.
The Hollywood was buzzing about Paramount Picture’s plan. Let us see how long the competitors would take to follow the strategy.
Photo Source: Facebook/ Paramount Pictures