Bucking its long-established business model, Universal Pictures announced it will be making its movies available online while they are still in theaters.
The unprecedented shift comes amid widespread business closures as the coronavirus pandemic spreads and the public seeks refuge indoors. But some worry that Universal’s temporary gamble could have long-term repercussions for the already-struggling theater industry.
Major studios typically release motion picture productions exclusively to theater chains for the first 75 days after a film’s opening. This window is an agreement that prevents studios from releasing films online or on DVD until a certain period has passed. And although that window has gradually shortened over the years, most studios have been hesitant to get rid of it altogether.
The coronavirus, however, has forced studios to reconsider. Now, Universal will make new films, such as The Invisible Man, The Hunt, and Emma, available to online customers for a $19.99 rental fee over a 48-hour period.
“Rather than delaying these films or releasing them into a challenged distribution landscape, we wanted to provide an option for people to view these titles in the home,” said NBCUniversal CEO Jeff Shell. “We hope and believe that people will still go to the movies in theaters where available, but we understand that for people in different areas of the world, that is increasingly becoming less possible.”
It isn’t clear, however, whether Universal will return to its traditional model once day-to-day life has returned to normal or whether it will continue to turn to the internet for additional profits. Some film critics are guessing the latter: “If movie theaters were in trouble before this,” said Rebeller Media’s Sonny Bunch, “they’re just about finished now.”
Theater ticket sales have held steady only because the prices have gone up. Attendance, on the other hand, has dwindled as streaming services such as Netflix and Hulu rope in at-home viewers. Studios have been looking to tap into this online fortune for some time, according to the Wall Street Journal, and the coronavirus might just be their golden ticket.
The question now is whether Universal’s decision to break the theater window and alleviate the economic costs of a global pandemic will do more harm than good. This might just be a temporary solution, but it has the potential to determine the future of an entire industry.
