Right now Universal and AMC are looking like saints in the exhibition business after taking a kicking in the teeth by rival circuits for their controversial deal last week to crunch the theatrical …
to their 60.5M Disney+ subscribers for a rental of $29.99 over Labor Day weekend is indeed seismic, unprecedented and stoking fears in exhibitors about their future livelihood.
Despite the ire of mid-level exhibition currently, there are some cooler heads prevailing out there about Disney’s pivot today withexperiment is “a one-off as opposed trying to say that there’s a new business windowing model.” We’re in the middle of a pandemic, Disney released some pretty bad numbers today and Disney+ is the only thing that’s working for them.
Says one film finance sage who funds feature productions, “Disney has no revenue coming in now, they’re losing money on theme parks, they can’t get TV into production. If 50% of subscribers rent it — well, that’s a lofty projection. It can make between $300M-$400M, but I don’t think it switches anything in the long term in shaking up moviegoing. I don’t think they can do this on a regular basis. There’s still a lot of money to be made in the theatrical windows model.
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