Mr. Ellis Jacob reports
CINEPLEX AND UNIVERSAL FILMED ENTERTAINMENT GROUP ENTER NEW DYNAMIC WINDOW AGREEMENT
Cineplex Inc. and Universal Filmed Entertainment Group have signed a multiyear agreement for theatrical exclusivity windows in the Canadian market. This new dynamic window agreement between the two companies preserves the theatrical experience, while adapting to changing consumer behaviour, particularly as the world and the entertainment industry navigate the effects of the COVID-19 pandemic. The two companies are committed to creating a sustainable model for years to come.
Similar to the agreements that Universal has established with other major exhibitors, coming into effect immediately, the agreement guarantees at least three full weekends (17 days) of theatrical exclusivity for all Universal Pictures and Focus Features theatrical releases, at which point the studio will have the option to make its titles available across premium video on demand (PVOD) platforms, including the Cineplex Store. Under the terms of the deal, any title that has a North American opening weekend box office of $50-million or more, including franchise titles, will play exclusively in theatres for at least five full weekends (31 days) before the title can be made available on PVOD.
"The pandemic has given the industry and movie-lovers around the globe a new appreciation for the magic of the big screen experience," said Ellis Jacob, president and chief executive officer of Cineplex. "We are pleased to work alongside like-minded partners such as Universal, a studio that respects the theatrical window and is committed to the sustainable long-term health of the theatrical ecosystem."
"With audience fragmentation accelerating due to the rise in digital, streaming and cord cutting, as well as the unprecedented issues our industry is facing right now, our relationship with exhibition had to evolve and adapt to the changing distribution landscape," said Donna Langley, chairman of Universal. "Giving consumers the flexibility to view content on their terms is more important than ever to help expand movie going, and Ellis and our partners at Cineplex allow us to increase these opportunities for our Canadian audience."
The full terms of the deal are confidential and are not being disclosed.
Universal's film slate, including titles from Universal Pictures, Focus Features and DreamWorks Animation, has five theatrical releases remaining on the 2020 calendar: The Croods: A New Age (Nov. 25, 2020), Half Brothers (Dec. 4, 2020), All My Life
(Dec. 4, 2020), News of the World (Dec. 25, 2020) and Promising Young Woman (Dec. 25, 2020).
About Cineplex Inc.
Cineplex is a top-tier Canadian brand that operates in the film entertainment and content, amusement and leisure, and media sectors. As a leading entertainment and media company, Cineplex welcomes millions of guests annually through its circuit of theatres and location-based entertainment venues across the country. In addition to being Canada's largest and most innovative film exhibitor, Cineplex also operates successful businesses in digital commerce, food service, alternative programming (Cineplex Events), cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media) and amusement solutions (Player One Amusement Group).
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