Theater Org Chief Declares War on Shortened Windows, Calls for 45-Day Exclusive Run on the Big Screen

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The gloves have come off.

For the first time since becoming head of the world’s largest cinema association, Michael O’Leary, president and CEO of Cinema United, broke the peaceful stance on the theater windows issue during his second annual address at CinemaCon.

O’Leary proposed that studios and cinemas should wait 45 days to release a movie online after its initial theater screening, rather than making it available earlier (either 17 or 31 days) for bigger films, which has become common practice during the pandemic. This is an alternative to the window system.

In today’s competitive market, all players – big studios as well as small independents – face immense pressures. However, sticking to the conventions of the pre-pandemic era or making temporary changes during that time could jeopardize the thriving film industry as a whole. This was emphasized by him to the gathering of theater owners who cheered in agreement. He advocated for a system that acknowledges our shared objectives and avoids pitting one sector against another in a narrow-minded pursuit of quick profits, which may compromise long-term prosperity.

Speaking as a movie enthusiast, I’d like to emphasize this point: The constant expectation or, at times, reality that movies will be accessible on other platforms in just a few weeks undermines the longevity of our beloved industry. This misconception significantly reduces the frequency of cinephiles like us visiting the cinema.

Since Cinema United isn’t authorized to discuss window negotiation due to antitrust matters, such discussions are handled by the individual studios themselves, O’Leary is able to express his thoughts on the subject.

Amidst the pandemic, Universal took the lead in establishing a profitable Premium Video On Demand (PVOD) timeframe, even striking a significant deal with AMC Theatres, the world’s largest cinema chain. This move was not accidental; after all, AMC CEO Adam Aron also advocated for reconsidering these windows. Other studios eventually followed this trend, albeit with a slight delay. However, Disney remains the exception, sticking to a 60-day exclusive window in most cases, except for a few instances.

Theater owners contend that significantly reducing the length of exclusive theatrical releases could potentially harm an already delicate movie-watching landscape.

Long-term prosperity should not be traded for immediate profit. However, it’s clear that the film industry has evolved significantly, and the traditional 90-day theatrical release for all movies is no longer applicable. We acknowledge the need for adaptability, allowing films that have reached their peak in theaters to move to other platforms to recuperate costs. Yet, there needs to be a foundation, and for the majority of films, a 45-day window is essential to accurately gauge the ultimate box office success and consumer demand.” – O’Leary.

He strongly believes that an engaging film would perform equally well on high-tier Video On Demand (VOD) platforms at the 45-day mark as it would at the 20-day mark. Furthermore, this approach would offer extra advantages such as increased marketing impact, publicity, and buzz generated from extended theater runs, and additional income too. “It’s not a case of one person’s gain being another’s loss. The aim is to expand the overall size of the pie, for everyone,” O’Leary added.

O’Leary stated that shorter release windows lead to fewer people attending theaters during a movie’s initial weeks. Moreover, this practice weakens the potential for moderately or low-budget films to attract an audience and sometimes prevents them from being produced at all.

The head of Cinema United’s remarks sparked much excitement, particularly when he suggested a strategic approach to underscore “exclusively in cinemas” on all advertising channels. Furthermore, he recommended against endorsing or pre-ordering home viewing options while the movie is still playing in theaters. Lastly, he emphasized that ‘home’ should not be the default application option until the film can no longer be viewed in thousands of theaters nationwide.

In today’s challenging market, where it becomes increasingly hard for studios and theater operators to reach consumers effectively, collaboration is essential if marketing efforts are to succeed (studios often argue that exhibitors don’t do enough in this regard, a claim that some members of Cinema United might contest). O’Leary emphasized that increasing public awareness is not just the job of the studios; exhibition should contribute its utmost to promote marketing across all demographics.

According to a study by a prominent research company, The National Research Group, there’s been a significant decrease in the public’s recognition of newly released films. Specifically, new movies that manage to achieve an awareness level above 50% on their opening weekend have seen a drop of approximately 38%.

Moving on, let’s aim for more than 50% of our audience being familiar with every wide release. In today’s era of constant communication, there’s no room for excuses in not reaching this goal when exhibition and distribution collaborate effectively. If less than half of cinema-goers are aware of a new film, can we honestly claim we are fostering a thriving theatrical industry?

O’Leary’s team discovered that the top 20 films annually, whether before or during the pandemic, saw a 10% decrease in box office revenue. These films typically ran for about 49 days. However, the earnings of the following 80 movies, often smaller or medium-sized productions, dropped by 32%. The average duration these movies were shown was significantly reduced to just 31 days.

As a movie enthusiast, I can’t help but notice that the decrease in box office numbers isn’t shocking. If we could manage to keep the drop for those 80 films at just 10% of what the top 20 are experiencing, it would boost the annual box office revenue by a staggering $1 billion!

O’Leary acknowledged that reduced viewing windows weren’t solely responsible for the significant decline in the 80 films. However, he emphasized that they played a crucial role, as viewers have become accustomed to watching movies at home within roughly three to four weeks. He explained that exclusivity not only benefits exhibition but also filmmakers, actors, studios, and moviegoers, as long as the window is adequate in length.

Extending windows, aided by marketing efforts, could slow down the current rate of decline and generate additional income for the industry,” he noted. “If we persist in shrinking the release periods, pushing out smaller and medium-sized films, giving an impression that only big blockbusters are worth watching at the theater, then eventually, the infrastructure necessary to produce those blockbusters will deteriorate.

O’Leary additionally encouraged cinema owners to make improvements to their theaters and noted that it would be beneficial to reconsider the timing of certain films, like showing a PG-rated family film at 10 PM in the evening.

As a dedicated gamer, I’ve just wrapped up another round, and it’s time for us, the leaders in the gaming world – be it exhibition or distribution – to join forces, open our lines of communication, and have honest discussions about how we can collectively improve. The landscape has changed, and if we want to seize the opportunities ahead, we need to adapt, but more importantly, innovate. There’s no reason we can’t thrive, but it requires a shift in strategy.

Previously, Charles Rivkin, head of the Motion Picture Association and an advocate for major entertainment companies, called on the industry in his annual address to bring back more filming to the U.S. He avoided referencing the current Trump administration during his speech.

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2025-04-01 20:55