A new clause in the theater chain’s deal could keep them from losing millions in box office revenue
Another huge crack in movie theaters’ longtime defense of the three-month theatrical window came Monday when Universal Pictures and Cinemark agreed to shorten the time to as little as 17 days, similar to a deal the studio made with AMC Theatres back in July. But Cinemark was able to secure a new clause that ensures they won’t lose millions in box office revenue from major blockbusters hitting home markets so soon after opening in theaters.
As with the AMC deal, the studio, along with indie unit Focus Features, will be able to place films on premium video on-demand after three weekends of exclusive theatrical release. In exchange, the theater chain will receive an undisclosed portion of PVOD sales from that early home release period. Sources with knowledge of the deal have told TheWrap that Cinemark will receive similar PVOD profit-sharing.