Boxoffice Pro Q1 2021

EXHIBITORS HAVE THEIR SAY
What’s your biggest takeaway from 2020?
“I’ve always said that the
strength of Cineplex is its
employees, and that couldn’t
be more evident than right
now. Despite the challenges
of 2020, the team came
together like never before,
putting the right measures in
place to solidify Cineplex’s
future and ensure we remain
Canada’s leading source
of entertainment for many
generations to come.”
Ellis Jacob
President & CEO
Cineplex
“For many, 2020 caused us to
reevaluate our priorities, and,
for most of us, family, friends,
and communal experiences
were what we valued and
missed the most. While we
could instantly consume
infinite media within our
homes and get just about
any item delivered within two
hours, 2020 didn’t change
the fact that we’re social
creatures. Humans crave
communal experiences, and
I believe concerts, movie
theaters, theme parks, and
out-of-home entertainment
will not only prevail but
eventually thrive again.”
Luis Olloqui
CEO
Cinépolis USA
“You find out who your true
partners are; their acts of
kindness and compassion
mean the world.”
Chris Johnson
CEO
Classic Cinemas
“Our takeaway from 2020 is
that our most competitive
force was government
mandates and the impact
they had on studio movie
releases, leading to
disastrous situations for most,
if not all, of the industry. We
look forward to a change
in course of the prejudice
against the safety of
theaters.”
Matt McSparin
COO
GQT Movies
“Along with so many others,
I will remember the stress
and damage to the industry I
love so much. But even more
so, I will remember how the
industry came together to
support each other and our
team members in 2020. I will
also remember the efforts
and valuable guidance of
everyone at NATO, as well
as their passionate and
determined advocacy for
our industry. Lastly, I will
remember the support of our
loyal guests and dedicated
team members. I have never
been more confident in the
theatrical experience and
look forward to our industry
roaring back to record
success in the coming
months and years.”
Mike Bowers
President & CEO
Harkins Theatres
4
THE DYNAMIC WINDOW
July
If Universal’s PVOD launch of
Trolls: World Tour was the first
step in shrinking the theatrical
window, the studio took another
leap toward that goal when it
announced a groundbreaking
agreement with AMC Theatres
to shorten that window beyond
the duration of the Covid-19
pandemic. After initially vowing
not to book any Universal titles
that would break exclusivity,
AMC went on to negotiate
with the studio on a deal that
shortened theatrical exclusivity
to either 17 or 30 days
depending on the title. Crucially,
AMC received a commitment
from Universal to receive an
undisclosed portion of digital
rental revenues in exchange for
being the first major chain to
sign on to the proposal.
Signed in July, the
AMC-Universal deal sent
shockwaves across the
industry. It signaled a shift
from pandemic-specific
measures around a handful
of titles to a long-standing
change in the economics
of theatrical distribution.
Nevertheless, the model was
unlikely to work without
additional circuits on board.
It took nearly four months for
that to occur, with Cinemark—
the third largest exhibitor in
North America—joining the
deal and coining the term
“Dynamic Window.” Cineplex,
Canada’s largest circuit, struck
its own agreement days after
Cinemark.
Universal’s “Dynamic
Window” establishes a 17-day
minimum exclusivity for its
titles at cinemas, after which
they become available for
digital rental at home. For
select titles, that exclusivity
period is extended to 30 days.
It stands apart from similar
moves made by competing
studios by being the only
model that has openly engaged
cinemas (albeit limited to major
circuits) in collaborating on
an agreement. What theatrical
exclusivity will look like once
the market recovers is still up
in the air, especially as the
pandemic drags on into 2021,
but the Dynamic Window
model remains the only one to
have gained significant traction
with exhibitors.
Q1 2021
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