AMC Entertainment's leadership is calling for a significant shift in the film industry's release strategies. During a recent earnings call, Adam Aron, the company's CEO, expressed his views on the current trend of shortening theatrical windows. He believes that reverting to pre-pandemic release schedules could benefit multiple stakeholders within the entertainment sector. Aron emphasized the importance of longer exclusive cinema showings before films become available on streaming platforms, suggesting this approach would enhance overall profitability and audience experience.
Aron's vision involves a gradual return to extended release windows, starting with a commitment from studios and streaming services to maintain a minimum 45-day gap between theatrical premieres and online availability. This timeline was widely adopted before the pandemic but has since been shortened to as little as 17 days in some cases. The AMC chief argues that such a change would create a more balanced ecosystem where cinemas, production houses, and digital platforms can thrive together.
The executive also highlighted the positive impact this move could have on consumer behavior. With longer theatrical exclusivity, moviegoers might be more inclined to visit theaters, thereby boosting ticket sales and concession revenues. Moreover, it would give films more time to build momentum and word-of-mouth buzz, which is crucial for their long-term success across various distribution channels.
In addition to advocating for these changes, Aron envisions an eventual increase in the minimum window period to 74 days. He believes this extended timeframe would provide sufficient breathing room for both major blockbusters and independent films alike. By allowing movies to fully capitalize on their theatrical runs, all parties involved stand to gain from increased exposure and revenue generation opportunities.
Aron's proposal reflects a broader industry debate about the future of film distribution. As the world continues to recover from the disruptions caused by the pandemic, many are questioning whether the accelerated shift towards streaming will become permanent or if there is still room for traditional theatrical experiences. His stance underscores the belief that a balanced approach, favoring both cinema and streaming, holds the key to sustained growth in the entertainment sector.