[Dion]

Universal pictures wants to release it's new movies on PVOD and in the theatres at the same time. This will only hurt the big theatres as more will choose to stay home and it on demand.

Is this the beginning of the end?

Theaters traditionally require a 90-day window between a movie's cinematic release and digital download. Discussions of different launch agreements have failed in the past, but AMC is still willing to sit down with Universal to hash out a different plan. In the meantime, Aron is sticking to his guns, discontinuing Universal movies in the US, Europe, and the Middle East. "It is disappointing to us," he said, "but Jeff's comments as to Universal's unilateral actions and intentions have left us with no choice."

"We want to be absolutely clear, so that there is no ambiguity of any kind," the memo, addressed to studio chairperson Donna Langley, continued. "AMC believes that with this proposed action to go to the home and theaters simultaneously, Universal is breaking the business model and dealings between our two companies. It assumes that we will meekly accept a reshaped view of how studios and exhibitors should interact, with zero concern on Universal's part as to how its actions affect us."

"The results for Trolls World Tour have exceeded our expectations and demonstrated the viability of PVOD," NBCUniversal CEO Jeff Shell told The Wall Street Journal this week. "As soon as theaters reopen, we expect to release movies on both formats." That comment was not received well at AMC Entertainment, where CEO Adam Aron announced in a scathing letter to Universal Studios that, moving forward, AMC will no longer license Universal movies in any of its 1,000 theaters globally.