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Movie Studios Don't Have Plans To Buy Struggling Theaters
Warner Bros. and Universal officially declared that they have no plans to buy out movie theaters. Movie theaters were forced to shut down internationally due to the coronavirus. While many have reopened with COVID regulations or reduced capacity, two of the United States' most prominent markets, California and New York, have yet to reopen their movie theaters. Some major chains have even opted to reclose all of their theaters nationwide. Ultimately, these times have been detrimental to movie theater chains like AMC, Regal, and Cinemark.
The delay in reopening theaters has caused the biggest feature films set to release this year to either postpone their release dates or release directly to streaming. Major movie chains have felt betrayed by distributors who have decided to break their arrangement and release their films on streaming platforms. The decision to stream films like Trolls World Tour, Mulan, and Soul caused movie theater chains to speak out against those films' distributors. Other films like Tenent pressed on after multiple postponements and tanked at the box office.
According to Comicbook, Warner Bros. CEO Ann Sarnoff and Universal chairman Donna Langley explained that they have no plans to relieve struggling movie theaters by buying them out. They announced that they aren't currently considering purchasing movie theater chains during the Milken Institute Global Conference virtual panel. Sarnoff claimed that while they don't have any inclination to help movie theaters, she wishes the best for their partners and wants to see them thrive.
Quote:
"We have no plans to do that currently. We have no plans either. I’m kind of an armchair sociologist and I believe people want to have communal experiences and especially with certain genres. We’re big fans of the exhibitors. They’ve been good partners of ours for many decades. We’re rooting for them. I know it’s tough sledding right now. I’m hoping they come out on the other side, probably even stronger."
This is not to say that they don't plan to, but if they aren't motivated to do so already, it's unlikely that they'll have a sudden change of heart. Since movie theaters will likely be on their own, they have been strategizing to navigate these challenging times. If they do not receive relief from distributors or other organizations, they will opt for the RESTART Act, which would provide loans for companies with over 5,000 employees.
Many fans were hoping these distributors would swoop in to save the movie theaters. With how hard they advocated, it's unlikely Warner Bros and Universal didn't hear their pleas. It would be a smart movie for these studios. Streaming has taken a toll on movie theaters, and if these studios bought out theaters, they would be able to exclusively run their content and even reconfigure movie theaters to act more like streaming platforms. Also, just coming from a perspective of compassion, one would think studios would be more willing to lend a helping hand despite being at odds. Unfortunately, it looks like movie theaters will have to find another solution.
