Wall Street analysts weighed in on AMC Theatres' historic agreement with Universal Pictures that will allow the studio's movies to be made available on premium VOD after just 17 days of play in cinemas
"We worry that the near-term impact on attendance can be more substantial and consumers in the long run will continue to opt to watch more non-blockbuster films in their homes," says one Wall Street expert.
What does it mean though for movie going and the like? Nathanson predicted movie attendance would be cannibalized. He said that looking at the top 2019 films in key categories shows that roughly 80 percent-90 percent of total box office was generated within the first four weeks, with the first three weeks accounting for 70 percent-80 percent.
But he concluded: "Given the higher PVOD revenue take for studios and depending on the PVOD price, net-net, weNathanson in his Wednesday report also reiterated his previously voiced view that "the only long-term winners in film are Netflix, Amazon, and Disney because they have built scaled global streaming platforms that will benefit from a shortened release cycle of theatrical films that populate their own proprietary SVOD platforms.
Nathanson also expects fallout on the number of movie screens in the U.S. "We would expect the number of screens in the U.S. to start to shrink as owners refocus on protecting their most profitable multiplex locations, which will hurt Added Durkin: "If this arrangement was structured in a way that results in higher studio profitability or less studio risk, we could see more theatrical releases, and a more diverse slate of films, which could prove a positive for theaters over time."
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How to write a business plan, according to a former Wall Street exec - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Wall Street slips in early trading; gold hovers near recordStocks open lower on Wall Street and the price of gold is hovering near the record high it closed at a day earlier. Investors are keeping a close eye on negotiations in Congress over more measures to provide economic relief from the coronavirus pandemic.
Read more »
Late slump pulls Wall Street lower; gold sets another recordStocks pulled lower on Wall Street Tuesday following a mixed set of earnings reports from dozens of big U.S. companies.
Read more »
Wall Street Analysts Bullish on Victoria’s Secret Parent CompanyL Brands’ stock surged more than 35 percent after the retailer laid out plans to save the company roughly $400 million annually.
Read more »
Wall Street rises on upbeat earnings as Fed loomsU.S. stocks rose on Wednesday as a slew of positive earnings updates and hopes for assurances of continued support from the Federal Reserve overshadowed concerns about next steps for the government's coronavirus support plan.
Read more »
Wall Street rallies as Fed keeps rates pinned at record lowWall Street rallied on Wednesday, and the S&P 500 climbed 1.2% for its best day in two weeks after the Federal Reserve kept the accelerator floored on its support for the economy.
Read more »