Cinema chain Regal will reopen next month in time for the big-budget release "Godzilla vs. Kong," owner Cineworld said on Tuesday, as it set out a deal to show Warner Bros. films before they are made available for home streaming from 2022.
The world's second-largest cinema group, whose reopening plans follow larger U.S. rival AMC's, said the multi-year deal with Warner Bros. would let it show the studio's movies in U.S. cinemas with 45 days exclusivity, beginning next year.
AT&T-owned Warner Bros. said in December that for 2021 it would release films at the same time to theaters and on its streaming service HBO Max.
It's the latest sign of how cinemas and streaming platforms might co-exist in a post-pandemic world.
The deal is the latest sign of how cinemas and flourishing streaming platforms might co-exist in a post-pandemic world.
"This (Warner Bros.) agreement shows the studio's commitment to the theatrical business," Cineworld CEO Mooky Greidinger said.
U.S.-listed Cinemark signed a deal in November to allow Comcast-owned Universal Pictures to offer its movies to U.S. homes as soon as 17 days after their theater debut, while Universal has a similar agreement with AMC.
With theater capacity limits rising to 50 percent or more across most U.S. states, Cineworld will be able to operate profitably, Greidinger said.
However, brokerage Peel Hunt predicted a bumpy ride for cinemas.
"We expect leisure consumers will prioritize social activities over high-frequency cinema attendance," it said, cutting its rating on Cineworld stock to 'hold' from 'buy.'
Cineworld, which closed most of its nearly 800 sites last October, temporarily affecting 45,000 jobs, plans to reopen its U.K. cinemas in May, in line with government guidelines.
Analysts on average expect the company to post a $1.29 billion loss for 2020, when it reports results on Thursday. It made a profit of $220.2 million in 2019.
