May 7, 2021
Cinemark, the nation’s No. 3 movie theater chain, May 7 announced it has reached agreements to theatrically showcase films from five major studio partners across its U.S. screens.
This announcement builds upon the exhibitor’s November agreement with Universal Pictures and includes agreements with Warner Bros. Pictures, The Walt Disney Co., Paramount Pictures and Sony Pictures Entertainment.
Collectively, the agreements secure a consistent supply of content and demonstrate a shared commitment to offering consumers the ultimate movie-viewing experience, with compelling content exhibited within the theatrical environment, according to Cinemark.
The agreements come on the heels of Cinemark inking distribution of Netflix original movies in an abbreviated theatrical window — the first for the streamer. Cinemark isn’t divulging specifics on the studio deals, citing “unique attributes” specific to each studio that mutually benefits both parties.
With many studios also operating direct-to-consumer distribution through streaming and premium VOD, exhibitors are having to re-visit legacy theatrical window agreements to remake them to better reflect the changing consumer access to screen entertainment.
“In our ongoing efforts to maximize attendance and box office during the pandemic and beyond, our goal is to provide the widest range of content with terms that are in the best long-term interests of Cinemark, our studio partners and moviegoers,” CEO Mark Zoradi said in a statement. “We are pleased with these recent developments and are confident we are taking positive steps toward reigniting theatrical exhibition and evolving the industry for a post-pandemic landscape.”
The new distribution agreements come as Cinemark attempts to claw its way out of a financial hole caused by the pandemic. The chain said it attracted 7.7 million moviegoers and $114.5 million in revenue in the first quarter (ended March 31). That compared with $543.6 million in revenue during the previous-year period. Its net loss ballooned to $208.2 million, compared with a loss of $59.6 million in the previous year period.