For AMC, which was struggling even before forced closures due to the pandemic, icing out Universal means the circuit wonвЂ™t be able to screen the next вЂњFast & FuriousвЂќ flick or вЂњJurassic WorldвЂќ sequel. But if Aron makes good on the threat, that would deprive Universal of thousands of screens to play movies - and pissing off the worldвЂ™s largest exhibitor will take a big chunk out of the studioвЂ™s box office earnings.

It remains to be seen if Universal is going to continue playing around with theatersвЂ™ exclusive access to its films. We absolutely believe in the theatrical experience and have made no statement to the contrary,вЂќ the studio said Tuesday evening. вЂњOur desire has always been to efficiently deliver entertainment to as wide an audience as possible. AMC believes that with this proposed action to go to the home and theaters simultaneously, Universal is breaking the business model and dealings between our two companies.вЂќДЄ spokesperson for Universal Pictures responded at the time, defending the studio and saying ShellвЂ™s comments were misconstrued. вЂњAccordingly, we want to be absolutely clear, so that there is no ambiguity of any kind. вЂњThis radical change by Universal to the business model that currently exists between our two companies represents nothing but downside for us and is categorically unacceptable to AMC Entertainment,вЂќ Aron wrote in a letter to the studio Tuesday night, announcing his venues would ban UniversalвЂ™s movies. Before taking a shot across exhibitionвЂ™s bow, Universal reported a day earlier that Pete Davidson and Judd ApatowвЂ™s comedy вЂњThe King of Staten Island,вЂќ would also forgo a theatrical release and drop on digital rental platforms in June.ДЄMCвЂ™s CEO and president Adam Aron called ShellвЂ™s remarks вЂњunacceptable.вЂќ And there are other reasons relations have grown strained.

ShellвЂ™s comments were interpreted as fighting words to those in the business of showing movies on the big screen. вЂњAs soon as theaters reopen, we expect to release movies on both formats,вЂќ Shell told the Wall Street Journal.

But the claws didnвЂ™t come out until NBCUniversalвЂ™s CEO Jeff Shell suggested on Tuesday that Universal might start to simultaneously release some movies in theaters and on-demand, even after the pandemic subsides. ExhibitorsвЂ™ eyebrows were raised, particularly as Universal made its announcement before the shutdown went into effect, but they ultimately accepted it given circumstances and a general understanding that studios would otherwise wait until multiplexes reopen to showcase their most anticipated films. The seeming declaration of war was triggered after Universal took a victory lap in the press, touting better-than-expected success for вЂњ Trolls World Tour.вЂќ The studio decided last month to move its animated sequel to вЂњTrollsвЂќ directly on premium video-on-demand - and in a handful of drive-ins across the country - when it became clear cinemas would have to close amid the coronavirus outbreak. Tensions between AMC Theatres and Universal Pictures reached a boiling point Tuesday night, ending in an explosive proclamation that the worldвЂ™s largest theater chain would no longer play movies from one of the biggest studios in Hollywood.

Exhibitors and studios might be well served to remember a saying from Mahatma Gandhi - вЂњAn eye for an eye only ends up making the whole world blind.вЂќ Instead of heeding the words of the Indian nationalist, the two camps are locked in a deadly struggle, one fueled by ego, distrust, and recrimination, that will likely leave both sides gravely wounded unless, or until, cooler heads prevail.

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