AMC and Paramount Strike Deal to Offer VOD for Horror Movies Playing in Theaters
In an apparent move to test the waters, Paramount has struck a deal with AMC Theaters and Cineplex Entertainment to make two of its upcoming horror films available to customers for on-demand viewing as well, according to a report by Deadline.
The two movies that will be the pilots for this new venture are "Paranormal Activity: The Ghost Dimension" and "Scouts Guide To The Zombie Apocalypse."
Both films will be released in October to correspond with the horror themes of the month's Halloween holiday celebrations. "Paranormal" will be released on Oct. 23 and "Scouts" will be released on the day before Halloween, Oct. 30.
In the past, theatrical exhibitors have fought the efforts of production companies to make their films available close to the end of their runs on cinema screens with most waiting at least 90 days before releasing them on home video.
Those who run these theatrical companies also forced Universal to rescind its efforts to offer the Eddie Murphy and Ben Stiller flick "Tower Heist" on a premium VOD service within three weeks of its theatrical debut in 2011.
This current deal is supposed to allow Paramount to release the two horror movies on VOD services when the theatrical run dips below the "300-screens" count.
The move will allow the giant theatrical chains AMC and Cineplex to receive a percentage of the sales amounts of the early VOD services. The period for the AMC and Cineplex sales percentages will end after the standard 90-day window has been breached.
"Movie-lovers want us to respond and meet their desires," Brad Grey, CEO of Paramount Pictures, told Deadline. "Exhibitors want to keep their businesses strong. Filmmakers want us to put a premium on the theatrical experience and optimize consumer access to their creations. Our hope and intent is that this initiative offers a degree of innovation that benefits all parties."
Variety reports that the percentage other exhibitors receive will be directly related to its market share, which insinuates that the smaller cinema business may get a cut as well.
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